Company Number: 15182036

Analysis Date: 2025-07-29 12:34 UTC

1. Risk Rating: HIGH
   The company shows significant net liabilities and a negative working capital position shortly after incorporation, indicating elevated solvency and liquidity risks.

2. Key Concerns:

• Severe Negative Net Current Assets: Current liabilities (£50,703) vastly exceed current assets (£4,891), resulting in a net current liability of £45,812, signaling immediate liquidity pressure.
• Negative Shareholders’ Funds: Total net assets stand at -£44,613, implying the company is insolvent on a balance sheet basis. This raises concerns about the ability to meet long-term obligations.
• High Reliance on Short-Term Creditors: A substantial portion of liabilities includes bank loans and overdrafts (£18,214) and other creditors (£30,027), suggesting significant short-term debt burden that may strain cash flow.

3. Positive Indicators:

• No Overdue Filings: The company has filed accounts and confirmation statements on time, demonstrating regulatory compliance and good governance in statutory obligations.
• Active Status with Directors in Place: The company is active with two directors holding significant control, indicating clear governance structure.
• Modest Tangible Fixed Assets: Ownership of computer equipment valued at £1,199 provides some fixed asset base, albeit limited.

4. Due Diligence Notes:

• Investigate the nature and terms of the £18,214 bank loans and overdrafts to assess repayment schedules and covenants.
• Review cash flow statements and management forecasts to evaluate liquidity management and potential funding sources.
• Clarify reasons behind the large creditor balances and if any are overdue or subject to dispute.
• Assess the company’s business plan and revenue generation prospects given the industry (used car sales) and the negative equity position.
• Confirm no director disqualifications or adverse regulatory issues affecting management capability.