Company Number: 13937357

Analysis Date: 2025-07-29 19:25 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and net current liabilities that have worsened compared to the prior year, indicating solvency and liquidity risks. The negative shareholders’ funds suggest the company may not be able to meet its obligations without additional capital.

2. Key Concerns:

• Negative Net Assets and Net Current Liabilities: As of 29 Feb 2024, net assets are negative (£-1,902) and net current liabilities are significant (£-5,371), showing the company’s current liabilities exceed its assets, raising questions about solvency.
• Deteriorating Financial Position: Fixed assets and total assets less current liabilities have decreased compared to previous years, indicating a weakening financial base.
• Small Scale and Limited Financial Transparency: Being a micro-entity with minimal financial disclosures limits insight into revenue, profitability, cash flows, and debt servicing capacity, increasing uncertainty around operational stability.

3. Positive Indicators:

• Timely Filing and Compliance: Accounts and confirmation statements are filed on time, with no overdue filings, indicating good regulatory compliance and governance discipline.
• Stable Management Team: Two directors have been in place since incorporation, suggesting continuity in leadership.
• No Indication of Insolvency Proceedings: The company is active and not in liquidation, administration, or receivership.

4. Due Diligence Notes:

• Review detailed cash flow and profit & loss statements to assess operational cash generation and profitability, which are not available in micro-entity filings.
• Investigate the nature and timing of current liabilities to understand short-term liquidity pressures.
• Assess the business model sustainability given the ongoing negative net assets and whether there is a plan or history of capital injections from shareholders.
• Verify the adequacy of fixed assets and whether any are pledged as security against liabilities.