Company Number: 13244197

Analysis Date: 2025-07-29 14:23 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and modest net current assets; however, very low cash balances (£500) alongside significant current liabilities, mainly loans and borrowings (bank overdrafts), indicate liquidity risks. The reliance on amounts owed by related parties as a major part of debtors also adds uncertainty.

2. Key Concerns:

• Liquidity Constraints: Cash on hand is minimal (£500), while current liabilities (£160,781) are substantial, primarily from bank overdrafts (£35,899), creating potential cash flow pressure.
• High Related Party Debtors: Over £108k owed by related parties constitutes a large portion of trade debtors, raising concerns about collectability and true liquidity.
• Declining Net Assets and Tangible Assets: Net assets decreased from £20,586 in 2023 to £13,805 in 2024, with tangible assets also depreciating, suggesting possible operational or profitability challenges.

3. Positive Indicators:

• Compliance and Filing: Accounts and confirmation statement filings are up to date with no overdue filings, reflecting good regulatory compliance.
• Stable Employment: Workforce remained stable at approximately 10 employees, indicating operational continuity.
• Going Concern Assumption: Directors confirm preparation of accounts on a going concern basis, suggesting management confidence in ongoing operations.

4. Due Diligence Notes:

• Investigate the nature and terms of amounts owed by related parties to assess recoverability and impact on liquidity.
• Review cash flow statements and bank overdraft facility terms to understand short-term funding strategies and risks.
• Assess profitability and revenue trends (not disclosed here) to understand causes of net asset reduction and depreciation of fixed assets.
• Confirm absence of director disqualifications or regulatory issues beyond filings, given the limited public data.