Company Number: 13205876

Analysis Date: 2025-07-29 14:35 UTC

1. Risk Rating: MEDIUM
   The company shows modest net assets and positive net current assets as of the latest year, indicating it can meet short-term obligations. However, shareholder funds have declined over recent years, and the company carries significant long-term liabilities, which raises some solvency concerns.

2. Key Concerns:

• Declining net assets: The net asset value decreased from £4,324 in 2021 to £1,579 in 2024, suggesting erosion of equity potentially due to losses or asset amortisation.
• Long-term debt: The company has substantial bank loans falling due after one year (£12,246 in 2024), which could pressure solvency if profitability or cash flow weakens.
• Low cash balance: Cash decreased to £3,813 in 2024 from £15,632 in 2021, which may indicate tighter liquidity and less buffer for daily operations.

3. Positive Indicators:

• Positive working capital: Net current assets improved to £3,887 in 2024, showing the company currently has more current assets than liabilities, supporting operational liquidity.
• No overdue filings: Accounts and confirmation statements are up to date, reflecting good regulatory compliance and management diligence.
• Single director with stable appointment: The sole director, appointed at incorporation, shows no red flags such as disqualifications or frequent changes.

4. Due Diligence Notes:

• Investigate reasons for declining net assets and amortisation impact on goodwill to assess sustainability of capital base.
• Assess cash flow patterns in detail to understand liquidity trends, including debtor ageing and creditor payment terms.
• Review loan covenants and repayment schedules for long-term bank loans to evaluate refinancing or default risk.
• Confirm absence of related party transactions or director loans that may affect financial stability (noting director loans present but repaid significantly in 2024).
• Verify operational revenue and profitability trends not visible in filleted accounts to determine ongoing business viability.