Company Number: 13447297

Analysis Date: 2025-07-29 13:54 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net current assets, indicating significant liquidity strain. Current liabilities greatly exceed current assets by approximately £360k over the last three years, which presents a solvency risk. The minimal net assets (£1,247) barely cover liabilities and equity, suggesting a fragile financial position.

2. Key Concerns:

• Liquidity Deficit: The company’s current liabilities (£366,955) vastly exceed its current assets (£7,602), resulting in a large working capital deficit, which raises serious concerns about short-term cash flow and the ability to meet immediate obligations.
• Ongoing Negative Equity History: Although slightly positive in the latest year, net assets have been negative previously and remain marginal, indicating inadequate capital buffer and potential solvency issues.
• Concentration of Roles and Limited Resources: Both directors and the secretary are from the same household address, with occupations outside senior management, which may imply limited operational capacity and governance oversight.

3. Positive Indicators:

• Timely Filings and Compliance: Accounts and confirmation statements are up to date with no overdue filings, demonstrating compliance with statutory requirements.
• Stable Fixed Asset Base: Fixed assets remain steady around £360k, which may represent property holdings typical of the SIC code 68209 (real estate letting and operating), potentially providing a tangible asset base.
• Micro Entity Reporting: Filing under micro-entity provisions reduces administrative burden, suitable for a small-scale operation.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets to verify if they are readily realizable or subject to encumbrances.
• Review cash flow statements and short-term financing arrangements to assess how the company manages its liquidity gap.
• Assess the governance structure and operational capacity given the concentration of roles within the family and the limited employee base.
• Confirm if the company is servicing its liabilities on time or if there are any payment delays or creditor pressures.
• Clarify the company’s business model and revenue generation given the minimal current assets and large current liabilities.