Company Number: 13637685

Analysis Date: 2025-07-19 12:15 UTC

1. Risk Rating: HIGH
   The company demonstrates significant and growing negative net assets and net current liabilities, indicating severe solvency issues and an inability to meet short-term obligations without external support.

2. Key Concerns:

• Severe Negative Net Assets: Net liabilities have increased from -£68k in 2023 to -£88k in 2024, reflecting worsening financial health and erosion of shareholder equity.
• Negative Working Capital: Current liabilities (£108.5k) far exceed current assets (£0), indicating acute liquidity risk and potential cash flow problems.
• Declining Fixed Assets and Reduced Headcount: Fixed assets reduced from £69.5k to £55.6k and average employees dropped from 2 to 1, possibly signaling downsizing or asset disposals due to financial distress.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, which suggests compliance with statutory requirements and a baseline level of governance discipline.
• Active Company Status: The company remains active and has not entered liquidation or administration despite financial challenges.
• Single Controlling Director/Shareholder: Control by one individual (Mr Paramasamy Nanthakumar) could allow for agile decision-making and focused management.

4. Due Diligence Notes:

• Investigate the nature and terms of long-term creditors (£33k+), as these liabilities may impose restrictive covenants or indicate creditor pressure.
• Assess cash flow statements and recent trading performance to understand operational viability and prospects for returning to profitability and positive net assets.
• Review any contingent liabilities or off-balance-sheet obligations not disclosed in the micro-entity accounts.
• Verify the reason for the significant reduction in fixed assets and headcount, to determine if these are one-off events or ongoing trends.
• Understand the business model sustainability given the micro size, limited assets, and negative equity.