Company Number: 13586954

Analysis Date: 2025-07-29 18:35 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk due to persistent negative net assets and current liabilities exceeding current assets, indicating potential challenges in meeting short-term obligations.

2. Key Concerns:

• Negative Net Assets: The company’s net assets remain negative (£-27,725 in 2024), though improved from prior years, indicating accumulated losses and potential insolvency risk.
• Working Capital Deficit: Current liabilities (£71,435) exceed current assets (£69,083), resulting in negative net current assets (£-2,352), a liquidity concern.
• Long-Term Creditors: The presence of creditors falling due after more than one year (£31,240) adds to the company’s financial obligations without clear evidence of sufficient asset coverage.

3. Positive Indicators:

• Improvement Trend: The net liabilities have reduced substantially from £-67,134 in 2023 to £-27,725 in 2024, showing progress in financial position.
• Increased Current Assets: A notable increase in current assets from £10,557 in 2023 to £69,083 in 2024 suggests improved asset liquidity or working capital management.
• Active Trading Status with No Overdue Filings: The company is active, with up-to-date accounts and confirmation statements, reflecting compliance with regulatory requirements.

4. Due Diligence Notes:

• Investigate the nature and terms of long-term creditors (£31,240) to assess repayment obligations and potential refinancing risks.
• Review cash flow statements and turnover data (not provided) to evaluate operational cash flows and sustainability of the business model.
• Confirm whether there are any contingent liabilities or off-balance sheet commitments that could exacerbate solvency risk.
• Consider the director’s plans or capital injection intentions to address the historical losses and improve equity position.
• Assess the reliability of financial data given micro-entity accounting standards and absence of audit.