Company Number: 13963103

Analysis Date: 2025-07-29 14:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency concerns, with current liabilities markedly exceeding current assets and no cash reserves reported at the year end. The net current liabilities position and minimal equity base raise serious doubts about its ability to meet short-term obligations and sustain operations.

2. Key Concerns:

• Negative Working Capital: As of 31 March 2024, net current assets are negative £26,463 (£5,430 debtors vs. £31,893 current liabilities), indicating immediate liquidity pressure.
• No Cash on Hand: The company held zero cash at year end despite having debtors, suggesting cash flow constraints or collection issues.
• Small Equity and Accumulated Losses: Shareholders’ funds are only £537, reduced from £700 the prior year, with a loss reflected in profit and loss reserves of £163, pointing to ongoing operational losses or financial strain.

3. Positive Indicators:

• Tangible Fixed Assets Acquisition: The company purchased motor vehicles worth £27,000, indicating some investment in operational capacity.
• Compliance with Filing Requirements: Accounts and confirmation statements are up to date and not overdue, demonstrating regulatory compliance.
• Clear Ownership and Governance: Control is well-defined with Mr. Lee Bourke holding majority ownership and director position, suggesting centralized decision-making.

4. Due Diligence Notes:

• Investigate the nature and collectability of the £5,430 debtors to assess the realistic conversion into cash.
• Review the terms and timing of the £31,893 current liabilities to understand immediate payment obligations and possible renegotiations.
• Obtain management accounts and cash flow forecasts to evaluate ongoing liquidity and operational viability beyond the year end.
• Assess the business model and revenue generation given the small size and recent incorporation (2022) to understand growth prospects or challenges.
• Consider the impact of the £27,000 asset investment on cash flow and whether it was financed through debt or equity.