Company Number: 12697004

Analysis Date: 2025-07-20 14:59 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets but has a significant negative working capital position and high long-term liabilities relative to equity, indicating moderate solvency risk. Its micro-entity status limits disclosure, restricting full assessment.

2. Key Concerns:

• Negative net current assets consistently over recent years (circa -£99k in 2024), indicating liquidity constraints and potential cash flow stress.
• Large creditor balances due after more than one year (£214k), which could pressure solvency if not managed alongside limited liquid assets.
• Minimal share capital (£100) and no employees, suggesting limited operational scale and potential dependence on external funding or related entities.

3. Positive Indicators:

• Growth in fixed assets from £104k in 2020 to £328k in 2024, reflecting asset accumulation possibly enhancing collateral value.
• Improvement in net assets from negative in prior years to £14k positive as of March 2024, showing some strengthening in financial position.
• Timely filing of accounts and confirmation statements, indicating compliance with regulatory obligations.

4. Due Diligence Notes:

• Investigate the nature and repayment terms of the £214k long-term creditors to assess refinancing or default risk.
• Clarify operational model given no employees reported and assess revenue streams and cash flow generation capability.
• Review director’s strategy for addressing ongoing negative working capital and funding plans to ensure sustainability.
• Confirm absence of related party transactions or guarantees that might affect risk profile but are not disclosed due to micro-entity accounting.