Company Number: 13161443

Analysis Date: 2025-07-20 19:06 UTC

1. Risk Rating: MEDIUM
   The company shows a positive net asset position but has significant negative net current assets (working capital deficit) indicating potential liquidity constraints. While the fixed assets provide some security, low current assets relative to current liabilities are a concern.

2. Key Concerns:

• Negative net current assets of approximately £74k consistently over the last three years, signaling potential short-term liquidity issues to meet obligations as they fall due.
• Limited cash reserves (£1,016 as of 2024) compared to substantial short-term creditors (£76,130), which could impair operational cash flow and payment capacity.
• Small share capital (£100) and modest retained earnings (£724) imply limited equity buffer to absorb financial shocks or losses.

3. Positive Indicators:

• The company is current on all filing obligations (accounts and confirmation statements), demonstrating compliance with regulatory requirements.
• Tangible fixed assets valued at £75,018 with no depreciation charged, indicating a stable asset base that could potentially be leveraged or sold if needed.
• Small employee base (2 staff) may reduce operational overheads and improve cost control flexibility.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities to assess urgency and any potential restructuring options.
• Clarify cash flow patterns, including rental income or revenue streams, to evaluate operational sustainability.
• Review director and shareholder backgrounds for any related party transactions or financial support mechanisms.
• Confirm no contingent liabilities or off-balance-sheet obligations exist that might exacerbate liquidity risks.