Company Number: 13886927

Analysis Date: 2025-07-20 16:47 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets and net current liabilities as of the latest financial year end. The working capital deficit and erosion of shareholders’ funds indicate solvency and liquidity concerns that elevate risk substantially.

2. Key Concerns:

• Negative net assets of £9,525 and net current liabilities of £10,731 as at 31 March 2024, indicating the company’s liabilities exceed its assets.
• Sharp increase in creditors (from £86,632 to £175,513) outpacing growth in current assets, worsening liquidity position.
• Significant director loan account balance (£64,993) reflecting reliance on related party funding, which may pose repayment or conflict of interest risks.

3. Positive Indicators:

• No overdue statutory filings; accounts and confirmation statements are current, suggesting regulatory compliance.
• Active trading status with a defined business activity in tour operator services (SIC 79120).
• Shareholder control concentrated with an experienced director who also acts as managing director, potentially ensuring focused management oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan, including repayment schedule and interest conditions, to assess financial support sustainability.
• Review cash flow statements and operational profitability trends to understand liquidity pressures and business viability.
• Clarify the reasons for the sharp increase in trade and other creditors and assess whether these are due to short-term cash flow issues or structural operational challenges.
• Confirm whether any contingent liabilities or off-balance sheet exposures exist that might further impair financial stability.