Company Number: 14150072

Analysis Date: 2025-07-29 14:34 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net asset value (shareholders funds) of approximately -£11,835 as of June 2024, worsening slightly from the prior year. This indicates insolvency on a balance sheet basis. Additionally, current liabilities significantly exceed current assets, suggesting liquidity stress. These factors collectively raise material concerns about the company’s ability to meet its obligations.

2. Key Concerns:

• Negative Net Assets: The company reports net liabilities rather than net assets, implying insolvency under accounting standards.
• Poor Liquidity Position: Current liabilities (£64,684) far exceed current assets (£5,921), indicating working capital deficiency and potential cash flow difficulties.
• Declining Fixed Assets: Fixed assets have decreased from £57,540 in 2023 to £46,928 in 2024, which may reflect asset disposals or write-downs, potentially signaling operational challenges.

3. Positive Indicators:

• Timely Filing: The company’s accounts and confirmation statement filings are up to date, showing compliance with statutory requirements.
• Stable Employment: Maintains a small but consistent workforce of 3 employees, indicating some operational continuity.
• No Indication of Insolvency Proceedings: The company is active and not in liquidation, administration, or receivership.

4. Due Diligence Notes:

• Investigate the nature of the company’s liabilities and whether these include any related party loans or contingent liabilities.
• Review cash flow statements, if available, to assess operational cash generation or reliance on external financing.
• Understand the reasons behind the reduction in fixed assets and whether this impacts revenue-generating capacity.
• Confirm if there are any director loans or other financial arrangements that could affect solvency or creditor risk.
• Evaluate business model sustainability given the micro-entity scale and negative equity position.