Company Number: 13111826

Analysis Date: 2025-07-20 11:16 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency and liquidity concerns, as indicated by negative net current assets and net liabilities in the latest financial year. The downward trend from positive net assets in prior years to a deficit position raises concerns about its ability to meet current obligations.

2. Key Concerns:

   • Negative Net Current Assets and Net Liabilities: As of 31 January 2024, the company reported net current liabilities of £1,752 and net liabilities of the same amount, indicating potential insolvency risk.
   • Declining Financial Position: The shareholders’ funds decreased from a positive £3,788 in 2023 to a negative £1,852 in 2024, showing a significant deterioration in retained earnings or accumulated losses.
   • Minimal Cash Reserves: Cash on hand is only £100, which is very low relative to current liabilities of £12,255, highlighting potential liquidity issues and difficulties in meeting short-term obligations.

3. Positive Indicators:

   • Compliance with Filings: The company is active and up to date with its accounts and confirmation statement filings, which reduces regulatory compliance risk.
   • Single Director and PSC Alignment: The sole director and person with significant control is consistent, simplifying governance oversight.
   • Operating in a Defined Niche: The company operates in freight transport by road (SIC 49410), a sector with ongoing demand, which could offer revenue potential if financial issues are addressed.

4. Due Diligence Notes:

   • Investigate Causes of Financial Decline: Review detailed profit and loss accounts and cash flow statements to understand what drove the negative movement in net assets and working capital.
   • Examine Debtor Quality and Collectability: Debtors represent the majority of current assets (£10,403), so assessing the age and recoverability of these amounts is critical.
   • Assess Current Liabilities Composition: The creditors consist mainly of taxes and social security (£12,255), which could indicate overdue statutory payments. Confirm any outstanding tax liabilities and potential penalties.
   • Evaluate the Director’s Plans: Engage with management to understand strategic plans to restore solvency and liquidity, including capital injections or operational improvements.
   • Review External Dependencies: Check for any related party transactions or contingent liabilities that could exacerbate financial risk.