Company Number: 13234647

Analysis Date: 2025-07-29 20:16 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net assets (shareholders’ funds of -£24,552 for 2024) indicating insolvency on a balance sheet basis. Current liabilities significantly exceed current assets, pointing to liquidity stress. Long-term creditors also exceed total assets less current liabilities, raising concerns about solvency and going concern.

2. Key Concerns:

• Negative net assets and cumulative losses eroding equity, which signals potential solvency problems.
• Current liabilities (£136k) vastly outweigh current assets (£1.5k), indicating very limited short-term liquidity to meet obligations as they fall due.
• Significant long-term liabilities (£243k) exceeding net assets, suggesting high gearing and risk of default on debt repayments.

3. Positive Indicators:

• Fixed assets remain stable at £352k, which may represent tangible property or real estate holdings that could provide collateral value or asset backing.
• The company is current with statutory filings (accounts and confirmation statements), demonstrating regulatory compliance and governance discipline.
• Small workforce (2 employees) may indicate a lean operational structure with controlled overhead costs.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities to assess repayment schedules, interest costs, and creditor risks.
• Review cash flow statements and management accounts (if available) to assess operational cash generation and near-term liquidity.
• Clarify the valuation and marketability of fixed assets to determine recoverable value in case of financial distress.
• Examine directors’ plans or strategic initiatives addressing the negative equity and how they intend to restore financial stability.
• Confirm no director disqualifications or regulatory issues exist beyond the accounts data.