Company Number: 13114334

Analysis Date: 2025-07-20 11:03 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, reflected in negative net assets and net current liabilities for the most recent financial year. This level of financial deterioration over a short period signals elevated risk for creditors and investors.

2. Key Concerns:

   • Negative Net Assets: The company reported net assets of -£7,234 as at 31 January 2024, indicating liabilities exceed assets, which undermines the company’s solvency.
   • Sustained Negative Working Capital: Net current liabilities stand at -£13,311, showing the company does not have adequate short-term assets to cover current liabilities, which raises liquidity and cash flow risk.
   • Rapid Financial Deterioration: Compared to 2023, when net assets were positive at £6,470, the company’s financial position has worsened considerably within one year, suggesting operational or financial instability.

3. Positive Indicators:

   • Active Status and Compliance: The company is active with no overdue filings for accounts or confirmation statements, indicating compliance with statutory requirements.
   • Micro-Entity Reporting: The company benefits from simplified reporting standards under the micro-entity regime, limiting administrative burden.
   • Stable Directorship: Two directors have been in place since incorporation, which may imply stable leadership.

4. Due Diligence Notes:

   • Profit and Loss Analysis: Investigate the company’s profit and loss account and cash flow statements for the last two years to understand causes of the sharp decline in net assets and worsening working capital.
   • Debt Profile: Review details of current liabilities to assess the nature and maturity of debts, and whether there are any overdue payables or potential defaults.
   • Future Prospects and Business Model: Examine management commentary or strategic plans to evaluate operational stability and the company’s ability to return to profitability.
   • Directors’ Conduct and Related Party Transactions: Confirm that directors’ conduct records are clean and assess any related party transactions that could impact financial health.
   • External Funding or Support: Ascertain if the company has access to external funding or shareholder support to alleviate liquidity pressures.