Company Number: 12508701

Analysis Date: 2025-07-29 12:11 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns indicated by persistent negative net current assets and shareholders’ funds over multiple years, with current liabilities substantially exceeding current assets. The minimal cash balance and recurring creditor obligations suggest ongoing cash flow stress.

2. Key Concerns:

• Negative Net Current Assets & Shareholders’ Funds: Consistent net current liabilities around £18k and negative equity indicate the company is technically insolvent on a balance sheet basis.
• Limited Cash Reserves: Cash at year-end was only £141 in 2024, insufficient to meet short-term liabilities of £18,135, raising immediate liquidity risk.
• Related Party Debt: The £6,500 owed to a related party signals reliance on insider financing which may not be sustainable or at arm’s length terms.

3. Positive Indicators:

• No Overdue Filings: The company is current with statutory accounts and confirmation statement filings, suggesting compliance with regulatory requirements.
• Single Director with Full Control: Clear governance structure with one director who owns 75-100% of shares may facilitate swift decision-making.
• Going Concern Assertion: The director has stated a reasonable expectation of continued operation, which could imply anticipated capital injection or business turnaround plans.

4. Due Diligence Notes:

• Investigate the nature and terms of related party transactions and whether these represent loans or unpaid invoices.
• Review cash flow forecasts and funding plans to assess how the company intends to settle its liabilities.
• Confirm any off-balance sheet financing or contingent liabilities not disclosed in the accounts.
• Evaluate the company’s business model viability given the small scale and ongoing losses implied by negative reserves.