Company Number: 14095925

Analysis Date: 2025-07-29 18:17 UTC

1. Risk Rating: HIGH
   Justification: The company displays significant net liabilities and negative net current assets, indicating solvency concerns. Despite being a small private company limited by guarantee, the scale of outstanding long-term creditors relative to assets is substantial and growing.

2. Key Concerns:

   1. Solvency and Capital Structure – Net liabilities worsened from £400k (2022) to £2.5M (2023), driven largely by increased long-term creditors of £2.36M, raising doubts about the company’s ability to meet all obligations.
   2. Negative Net Current Assets – Current liabilities exceed current assets by £171k as of 2023, a deterioration from positive net current assets in 2022, which may indicate liquidity stress.
   3. Large Related-Party and Long-Term Loans – Significant creditor balances due to related parties and foundations with no repayments due within 12 months, and interest only starting post year-end, suggesting dependency on external financing and potential refinancing risk.

3. Positive Indicators:

   1. Solid Cash Position – Despite liabilities, the company holds a substantial cash balance (£819k), more than doubling since 2022, which supports near-term liquidity.
   2. Clean Audit Opinion – The 2023 accounts were audited with an unqualified opinion, indicating the financial statements are fairly presented and free from material misstatements.
   3. Established Governance and Control – The board includes multiple directors with clear appointments and control is transparent, with significant control held by named individuals and an entity, Systemiq Limited.

4. Due Diligence Notes:

   1. Investigate the nature, terms, and repayment plans of the £2.36M long-term creditors, especially the related-party loans from foundations, and their impact on future cash flows and going concern.
   2. Review detailed cash flow forecasts and funding arrangements to understand how the company intends to manage negative working capital and meet forthcoming obligations.
   3. Assess the operational performance and revenue generation capacity, as turnover and profit figures are not disclosed, to evaluate business sustainability and ability to reverse net liability trends.