Company Number: 14379413

Analysis Date: 2025-07-29 18:57 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with net liabilities increasing substantially year-on-year. Current liabilities exceed current assets by a large margin, indicating liquidity stress. The negative shareholders' funds and persistent losses raise substantial doubts about operational viability without external financing.

2. Key Concerns:

• Severe Net Current Liability Position: The company’s working capital is deeply negative (£-28,639 in 2024), signaling an inability to meet short-term obligations from current assets.
• Growing Net Liabilities: Net liabilities worsened from £-34,863 in 2023 to £-42,234 in 2024, reflecting ongoing losses and erosion of equity capital.
• Dependence on Director Loans and Creditors: Substantial director loan accounts (£13,875 current) and other creditors both short and long term suggest reliance on related party funding and external creditors to sustain operations, which may not be sustainable.

3. Positive Indicators:

• No Overdue Filings: The company has complied with statutory filing deadlines for accounts and confirmation statements, indicating regulatory compliance and governance discipline.
• Active Status with Recent Name Change: The company remains active and has rebranded recently, which may indicate attempts at repositioning or strategic adjustments.
• Small Employee Base: With only 2 employees on average, the company has a lean cost base which can be advantageous for operational scalability or restructuring.

4. Due Diligence Notes:

• Review cash flow forecasts and management plans to address liquidity deficits and assess likelihood of continued funding from directors or third parties.
• Investigate the nature and terms of director loans and other creditors, including repayment schedules and conditions.
• Examine underlying causes of losses and whether the business model or market conditions justify continued investment.
• Confirm no director disqualifications or regulatory investigations that might impair management capacity or governance.