Company Number: 12454276

Analysis Date: 2025-07-29 16:56 UTC

1. Risk Rating: HIGH

This rating is based on the company's persistent net current liabilities, minimal net assets, and reliance on loans with current liabilities exceeding current assets. The financial position indicates potential difficulties in meeting short-term obligations.

2. Key Concerns:

• Negative Working Capital: The company has net current liabilities of £1,041 for the latest reported year, indicating it does not have sufficient short-term assets to cover its short-term liabilities.
• Low Net Asset Value: Net assets remain marginal at £99, suggesting minimal equity buffer to absorb losses or financial shocks.
• High Loan Exposure Relative to Cash: Current liabilities largely consist of loans and overdrafts (£23,805), while cash holdings are only £801, raising concerns about liquidity and cash flow management.

3. Positive Indicators:

• Compliance and Filing Status: The company is up to date with both accounts and confirmation statement filings, indicating good regulatory compliance.
• Stable Fixed Assets: Fixed assets remain consistent year-on-year at £1,140, which suggests some level of operational stability in asset base.
• Single Director with Consistent Details: The director is consistent and actively managing the company, reducing governance risk from management changes.

4. Due Diligence Notes:

• Investigate the nature and terms of the loans and overdrafts to assess refinancing risk and repayment schedules.
• Review cash flow statements and management accounts (if available) to understand operating cash flows and liquidity management.
• Confirm the collectability and aging of debtors totaling £22,371, as high debtor balances relative to cash can signal collection risk.
• Assess the business model and revenue streams given the very low share capital (£1) and minimal equity to understand sustainability.
• Verify if there are any contingent liabilities or off-balance sheet items that might impact solvency.