Company Number: 13129407

Analysis Date: 2025-07-20 11:55 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk due to persistent and increasing net current liabilities and net negative equity. The financial data indicates ongoing reliance on director loans to meet obligations, which raises concerns about liquidity and operational sustainability.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has deteriorated from net liabilities of £20,178 in 2021 to £66,976 in 2024, indicating accumulated losses and erosion of equity.
• Excessive Current Liabilities vs. Current Assets: Current liabilities (£78,907 in 2024) far exceed current assets (£11,931), resulting in a working capital deficit of £66,976, which suggests potential difficulty in meeting short-term obligations.
• Director Loans as Primary Financing: Creditors within one year primarily comprise loans from directors (£78,907 in 2024), indicating dependency on insider funding and potential risk if these are called in or not renewed.

3. Positive Indicators:

• Timely Compliance: The company has filed accounts and confirmation statements on time, indicating adherence to statutory requirements and regulatory compliance.
• Steady Cash Position: Cash has increased from £5,125 in 2021 to £10,070 in 2024, which may suggest some improvement in cash management or inflows despite overall financial strain.
• Stable Management: The company has a single director who has been continuously appointed since incorporation, which may provide consistent leadership.

4. Due Diligence Notes:

• Investigate the terms and conditions of the director loans, including interest rates, repayment schedules, and whether these are formalized or informal arrangements.
• Review the company’s cash flow forecasts and business plans to assess how it intends to address the negative working capital and accumulated losses.
• Examine the absence of an audit and limited disclosures to understand the completeness and reliability of the financial information provided.
• Clarify the revenue and profitability trends underlying the losses to assess operational sustainability, including market position within the book publishing sector (SIC 58110).
• Confirm no undisclosed contingent liabilities or creditor pressures that could precipitate insolvency risks.