Company Number: 13441617

Analysis Date: 2025-07-20 16:29 UTC

1. Risk Rating: HIGH

Justification: The company exhibits significant liquidity concerns with current liabilities vastly exceeding current assets, indicating potential difficulties in meeting short-term obligations. The balance sheet reveals a substantial net current liability position (-£200,985) at the last reporting date. Additionally, the reliance on finance leases and hire purchase contracts adds to financial risk. Limited equity and the small share capital base further constrain financial flexibility.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£293,534) exceed current assets (£92,549) by a large margin, implying potential cash flow issues.
• Financial Leverage: Significant obligations under finance leases and hire purchase contracts (£45,797 total) with a material portion due within one year.
• Limited Capitalisation: Very low share capital (£100) and modest net assets (£68,852), which may be insufficient to absorb operational or market shocks.

3. Positive Indicators:

• Compliance: The company is active and has no overdue filings for accounts or confirmation statements, indicating good regulatory compliance.
• Tangible Assets: The company holds tangible fixed assets valued at approximately £305,934, which provide some asset backing.
• Experienced Directors: Directors are named and appear to have direct involvement; no disqualifications or governance issues are evident from the data.

4. Due Diligence Notes:

• Investigate cash flow projections and working capital management to assess how the company plans to address its liquidity gap.
• Review detailed terms and covenants of finance leases and hire purchase agreements to understand financial commitments and potential risk triggers.
• Obtain more recent financial statements or management accounts to verify if the liquidity situation has improved or deteriorated since the last filing.
• Assess the nature and valuation of tangible assets to determine their realizable value in a stress scenario.
• Confirm the revenue generation and profitability trends given the disclosed revenue recognition policies and limited employee base.