Company Number: 14224904

Analysis Date: 2025-07-20 16:28 UTC

1. Risk Rating: HIGH
   The company shows a deterioration in net current assets turning negative in its latest financial year, indicating immediate solvency concerns. The net liabilities and negative shareholders’ funds highlight financial instability. Despite director support, reliance on such backing raises risk for third-party investors.

2. Key Concerns:

• Negative Working Capital: Current liabilities exceed current assets by £395 as of 31 July 2024, reversing a previously positive position, signaling liquidity stress.
• Net Liabilities & Shareholders’ Deficit: The company’s shareholders’ funds moved from a positive £1,587 in prior years to a negative £395, implying erosion of capital and potential insolvency risk.
• Dependence on Director Support: Going concern is explicitly reliant on a director’s representation to continue financial support for 12 months, indicating insufficient operational cash flow or external financing avenues.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, reflecting regulatory compliance and governance discipline.
• Micro Entity Status: The company’s small scale limits complexity and potential exposure, which could simplify turnaround or restructuring efforts.
• Limited Employees: With only one employee on average during the year, operational overheads appear minimal, potentially aiding cost control.

4. Due Diligence Notes:

• Verify the nature and terms of the director’s financial support, including any contingencies or repayment conditions.
• Investigate the company’s cash flow forecasts and operational plans to assess sustainability beyond director backing.
• Review any contingent liabilities or off-balance sheet obligations that may exacerbate solvency risks.
• Confirm absence of any director disqualifications or governance issues that could impact company control or reputation.
• Assess market conditions and competitive positioning given the SIC code 45320 (retail trade of motor vehicle parts and accessories).