Company Number: 13101990

Analysis Date: 2025-07-20 13:30 UTC

1. Risk Rating: HIGH
   The company exhibits a significant solvency risk indicated by negative net asset values and large long-term liabilities far exceeding its assets. This financial structure suggests potential difficulties in meeting obligations without further capital injections or restructuring.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows negative shareholders' funds (£-117,909 in 2023), indicating the company is technically insolvent.
• High Long-Term Creditors: Creditors due after more than one year increased sharply from £80,632 in 2022 to £160,863 in 2023, more than five times the fixed assets, raising questions about debt sustainability.
• Liquidity Mismatch: While current assets increased significantly to £77,508 in 2023, the reported current liabilities figure in the accounts notes appears inconsistent (see below), but overall the company’s working capital position seems weak relative to its long-term obligations.

3. Positive Indicators:

• Timely Filing: The company’s accounts and confirmation statements are up to date, with no overdue filings, indicating good compliance with regulatory requirements.
• Stable Employment: The average number of employees remained constant at 5, suggesting operational stability and consistent business scale.
• Growing Current Assets: The current assets increased substantially from £32,882 in 2022 to £77,508 in 2023, which could help short-term liquidity if properly managed.

4. Due Diligence Notes:

• Clarify Creditors’ Classification: There is a discrepancy in the reported current liabilities: the summary states £160,863 as current liabilities in 2023, but the notes show £37,765 due within one year and the same figure as creditors falling due after more than one year. This needs reconciliation to understand true short-term vs long-term obligations.
• Investigate Negative Net Assets: Further information is needed on the causes of the negative equity and whether there are plans to address the insolvency risk (e.g., capital injections, debt restructuring).
• Examine Debt Terms: Details on the nature, maturity, and covenants of the long-term creditors would clarify financial risk and potential default scenarios.
• Cash Flow Analysis: Since micro-entity accounts do not disclose cash flow, obtaining management accounts or bank statements would be prudent to assess liquidity dynamics.
• Director Background: While no negative director conduct is noted, confirming the financial and operational track record of the sole director may provide additional risk insight.