Company Number: 12533305

Analysis Date: 2025-07-29 14:04 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity and solvency challenges evidenced by persistent net current liabilities and increasing creditor balances exceeding current assets. The minimal shareholders' funds and reliance on long-term creditors raise concerns about its ability to meet short-term obligations and sustain operations without external support.

2. Key Concerns:

• Negative net current assets consistently over the last five years (approx. £-11k in 2024), indicating ongoing liquidity pressure and potential cash flow difficulties.
• High amounts of creditors falling due after more than one year (£45,538 in 2024), which could signify substantial long-term debt obligations that may be difficult to refinance or repay.
• Very low equity base, with net assets just £1,455 in 2024, a marginal improvement from prior years' negative net assets, suggesting weak capitalization and limited financial resilience.

3. Positive Indicators:

• Increase in fixed assets from £40,322 in 2023 to £58,010 in 2024 may indicate investment in operational capacity or equipment, potentially supporting future revenue generation.
• The company is current with statutory filings (accounts and confirmation statements), reflecting compliance with Companies House requirements and good governance in this respect.
• The director, Ashley Stone, is also the sole significant controller, which may facilitate decisive management and strategic alignment.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£45,538), including repayment schedules, interest rates, and any covenants or security interests.
• Review cash flow statements and profit and loss details (not filed publicly) to assess operational cash generation and sustainability given current liabilities.
• Examine the business model and market position within the SIC 33190 classification (Repair of other equipment) to evaluate competitive risks and revenue stability.
• Confirm if there are any contingent liabilities or off-balance-sheet obligations impacting financial health.
• Assess the director's plans or strategies to improve liquidity and solvency, including potential capital injections or refinancing.