Company Number: 12643473

Analysis Date: 2025-07-20 15:48 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by its negative net assets and net current assets in the most recent financial year. The presence of long-term creditors exceeding current assets and a material deterioration from the prior year’s financial position justify a high-risk rating.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: At 30 June 2024, shareholders’ funds stand at -£2,446, indicating the company is insolvent on a balance sheet basis. This is a sharp reversal from the prior year’s positive net assets of £3,650.
• Negative Net Current Assets and High Long-Term Creditors: Current liabilities are £600, and there is a significant creditor balance of £3,725 due after more than one year. Current assets are only £915, resulting in net current liabilities of £1,515, which raises liquidity risk concerns for meeting short-term obligations.
• Declining Cash Position and Debtor Anomaly: Cash reserves have decreased from £978 to £569. Additionally, the 2024 accounts show debtors as a negative figure (-£1,484), which may indicate accounting irregularities or reclassification issues needing further clarification.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with Companies House filing deadlines for both accounts and confirmation statements, reducing regulatory risk.
• Tangible Fixed Assets: The company has invested in motor vehicles with a net book value of £2,794, which could support operations or be used as collateral.
• Active Status and No Insolvency Proceedings: The company is active and not currently subject to liquidation, administration, or receivership, indicating ongoing operations.

4. Due Diligence Notes:

• Investigate the nature and terms of the £3,725 long-term creditors to assess repayment obligations and impact on financial stability.
• Clarify the negative debtors balance of -£1,484 reported in 2024 to determine if this is a reporting error or represents a receivable write-back or adjustment.
• Review the company’s cash flow statements and operational performance to understand the cause of the liquidity deterioration and the sustainability of the business model.
• Confirm whether the tangible fixed assets (motor vehicles) are essential for operations and assess their market value relative to the carrying amount.
• Evaluate the director’s plans for financial recovery or restructuring given the negative equity position.