Company Number: 13101810

Analysis Date: 2025-07-20 11:35 UTC

1. Risk Rating: HIGH

Justification: The company shows significant solvency and liquidity concerns, with current liabilities vastly exceeding current assets and negative net working capital. The shareholders' funds are minimal and have declined over recent years, indicating weak capitalisation and financial fragility.

2. Key Concerns:

• Liquidity risk is acute, as current liabilities (£91,697) far exceed current assets (£929) as of 31 December 2023, indicating potential cash flow shortages to meet short-term obligations.
• High gearing with creditors due after one year (£224,905) more than 100 times the shareholders’ funds (£1,990), reflecting heavy reliance on debt financing and elevated solvency risk.
• Minimal equity base and negative retained earnings in early years suggest limited financial buffer to absorb losses or shocks, raising doubts about operational sustainability.

3. Positive Indicators:

• Increase in fixed assets from £191,431 in 2022 to £318,443 in 2023 may indicate asset growth or investment in property holdings which could generate future income.
• The company has filed all accounts and confirmation statements on time, indicating regulatory compliance and good governance in terms of statutory filings.
• Directors appear stable with two appointed since incorporation and no indication of disqualification or management issues.

4. Due Diligence Notes:

• Investigate the nature and terms of long-term creditors (£224,905) to understand debt servicing requirements and refinancing risk.
• Assess cash flow generation capability from operations and asset utilization to determine if current liabilities can be met without distress.
• Review detailed notes or management commentary (not provided here) for insight into business model viability, revenue streams, and future outlook.
• Confirm the accuracy of fixed asset valuation and whether these assets can be leveraged or sold if liquidity pressures intensify.
• Understand related party transactions or director loans if any, which may influence financial position.