Company Number: 14123371

Analysis Date: 2025-07-29 12:17 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistently negative net current assets and shareholders' funds, minimal cash holdings, and increasing creditor balances.

2. Key Concerns:

• Negative Equity and Working Capital Deficit: Shareholders' funds have deteriorated from -£49 in 2023 to -£574 in 2024, and net current liabilities worsened to -£564, indicating poor financial stability and potential insolvency risk.
• Minimal Cash Reserves: Cash on hand has dropped sharply from £101 to £26, suggesting potential liquidity issues to meet short-term obligations amounting to £590 creditors.
• Reliance on Director Loan: The creditor balance represents an interest-free loan from the director, which may not be sustainable or formalized as a long-term funding source, increasing risk if the director withdraws support.

3. Positive Indicators:

• No Filing or Compliance Issues: The company is active with no overdue accounts or confirmation statements, indicating sound regulatory compliance to date.
• Clear Ownership and Control: Two individuals hold 75-100% share and voting rights, providing transparent governance and control structure.
• Small Company Status with Exemption: The company benefits from small company reporting exemptions, reducing administrative burden and audit costs.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan and whether it is formalized or repayable on demand.
• Review turnover and profitability trends since turnover figures are not disclosed in the accounts extract; assess if the business generates sufficient revenue to improve working capital.
• Assess plans or capital injections to address the deteriorating equity and liquidity position.
• Confirm if there are any contingent liabilities or off-balance sheet risks not reflected in the accounts.
• Verify management's forecasts or strategic plans for business sustainability given current financial distress signals.