Company Number: 14058066

Analysis Date: 2025-07-29 20:06 UTC

1. Risk Rating: MEDIUM
   The company shows some improvement in net assets from a negative position to a small positive balance, indicating limited solvency improvement. However, the substantial current liabilities far exceed current assets, resulting in negative net current assets, which raises liquidity concerns.

2. Key Concerns:

• Liquidity risk due to current liabilities (£295,000) significantly exceeding current assets (£2,474) as of April 2024, leading to negative working capital.
• Heavy reliance on long-term creditors (£295,000) with minimal cash or liquid resources, which might pressure short-term operational cash flows.
• Small net asset base (£3,155) relative to total liabilities and fixed assets, suggesting thin equity buffer and potential vulnerability to market or operational shocks.

3. Positive Indicators:

• Increase in fixed assets from £178,966 (2023) to £302,013 (2024) possibly indicates asset acquisition or investment supporting future revenue generation.
• Company is current with statutory filings (accounts and confirmation statement), showing compliance and good governance at filing level.
• Directors remain consistent since incorporation with no noted disqualifications, indicating stable management presence.

4. Due Diligence Notes:

• Investigate the nature and terms of the £295,000 creditors due after more than one year to assess repayment obligations and refinancing risks.
• Review cash flow statements and any available management accounts for liquidity trends and operational cash generation capacity.
• Confirm the valuation and marketability of fixed assets to determine if they can support debt servicing or be liquidated if required.
• Clarify the absence of a profit and loss account filing and request additional financial details to assess profitability and operational sustainability.
• Examine the business model and revenue streams under SIC 68209 to understand income stability and growth prospects.