Company Number: 13265713

Analysis Date: 2025-07-29 15:17 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns based on its latest financials, with net liabilities increasing materially and negative net current assets indicating liquidity stress.

2. Key Concerns:

• Solvency Deterioration: Net assets have declined from a positive £6,823 at incorporation (2021) to a negative £21,094 by March 2024, signaling accumulated losses and increased liabilities.
• Negative Working Capital: Current liabilities exceed current assets by £15,573 as of the last filing, a reversal from a positive net current asset position the previous year, implying potential cash flow constraints to meet short-term obligations.
• Increasing Long-Term Creditors: Amounts falling due after more than one year remain substantial (£36,618 in 2024), indicating ongoing debt obligations that could pressure future cash flows, especially given the weakening equity base.

3. Positive Indicators:

• Timely Compliance: The company has no overdue filings for accounts or confirmation statements, reflecting good regulatory compliance and governance discipline.
• Stable Management: Directors have been in place since incorporation, and all are professionals (dentists) with presumably relevant industry knowledge.
• Small Scale: As a micro-entity with only three employees, operational complexity and overheads are likely low, potentially allowing management flexibility.

4. Due Diligence Notes:

• Verify the nature and terms of the long-term creditors and whether refinancing or repayment plans are in place.
• Investigate the cause of the significant drop in current assets from £23,895 to £3,279 and whether this signals asset disposals or cash burn.
• Review management plans to restore solvency and profitability, including any capital injection or restructuring proposals.
• Examine the company's cash flow statements and any contingent liabilities or off-balance-sheet risks not disclosed in limited filings.
• Confirm the absence of any director disqualifications or legal proceedings that could affect governance or operational continuity.