Company Number: 12554309

Analysis Date: 2025-07-29 14:53 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk with net current liabilities of £369,133 and negative shareholders’ funds of the same amount as of 30 April 2024. This marks a sharp deterioration from the prior year’s positive net current assets and equity, indicating a recent and material financial distress. The large increase in current liabilities, especially "other creditors," suggests possible liquidity issues and inability to meet short-term obligations without additional financing.

2. Key Concerns:

• Severe negative working capital: Current liabilities (£530,535) far exceed current assets (£161,402), indicating immediate liquidity pressures.
• Substantial accumulated losses: The profit and loss reserve shows a cumulative loss of £1,269,192, reflecting ongoing unprofitability and erosion of equity.
• Director’s loan account: The director, Mr Ashish Vipani, has a significant negative loan balance (£126,507), which may imply reliance on director financing and potential related-party risks.

3. Positive Indicators:

• No overdue filings: Accounts and confirmation statements are up to date, demonstrating regulatory compliance and good governance practices.
• Consistent leadership: The same two directors have been in place since incorporation, which may provide management stability.
• Operating in growth sectors: The SIC codes indicate activities in web portals and IT services, sectors with potential for scalability and growth.

4. Due Diligence Notes:

• Investigate the nature and maturity of the "other creditors" which have increased drastically, to assess potential refinancing or settlement risks.
• Review cash flow statements and management forecasts to understand how the company plans to address the liquidity shortfall.
• Examine the director’s loan arrangements for terms, repayment plans, and any potential conflicts of interest.
• Assess the revenue trend and profitability drivers given the large accumulated losses and recent deterioration in net assets.
• Confirm whether there are any contingent liabilities or pending legal issues not disclosed in the accounts.