Company Number: 14187686

Analysis Date: 2025-07-20 15:40 UTC

1. Risk Rating: HIGH
   The company shows a concerning negative net asset position (shareholders' funds negative £16,943 in 2024), indicating insolvency on a balance sheet basis. The total liabilities exceed total assets, suggesting solvency risk.

2. Key Concerns:

• Negative Net Assets: The company’s equity is negative and has deteriorated from prior years, indicating accumulated losses or insufficient capital.
• High Long-Term Creditors: Creditors due after more than one year (£763,758) vastly exceed current assets and net assets, posing a material solvency risk.
• Limited Liquidity: Current assets (£6,179) are minimal and likely insufficient to cover short-term obligations, despite positive net current assets reported. The very low current assets relative to liabilities raise liquidity concerns.

3. Positive Indicators:

• Stable Fixed Assets: The company holds fixed assets valued at £742,320 consistently, which may provide some collateral value.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating regulatory compliance and good governance in terms of statutory filings.
• Small Employee Base: Only two employees suggest low operational overhead, which might help manage cash flow pressures if revenue is consistent.

4. Due Diligence Notes:

• Investigate the nature and terms of the £763,758 creditors due after more than one year to understand repayment obligations and any restructuring arrangements.
• Review cash flow statements (not provided) to assess the company’s ability to service debts and fund operations.
• Examine the fixed assets valuation and liquidity—whether these assets can be monetized or are encumbered.
• Confirm the company's revenue streams and profitability trends since incorporation in 2022 to evaluate operational sustainability.
• Assess director plans to address negative equity and whether additional capital injections or refinancing are planned.