Company Number: 14356545

Analysis Date: 2025-07-29 15:53 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, demonstrated by large negative net current assets and shareholders' funds that have worsened over two years. The scale of liabilities relative to assets is a critical concern for financial stability.

2. Key Concerns:

• Severe Working Capital Deficit: Current liabilities (£187,638) substantially exceed current assets (£8,948), resulting in a net current liability position of £-178,690 as of the latest year-end, indicating potential cash flow difficulties.
• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities have nearly doubled from £-83,016 in 2023 to £-163,234 in 2024, reflecting accumulated losses and diminishing equity base.
• Rapid Increase in Creditors: Creditors due within one year have almost doubled in 12 months, particularly in “other creditors,” which may include trade or tax liabilities, raising concerns about the company's ability to meet short-term obligations.

3. Positive Indicators:

• Active Status with No Overdue Filings: The company is active, with both accounts and confirmation statements filed on time, suggesting regulatory compliance.
• Increasing Cash on Hand: Cash increased from £1,398 in 2023 to £7,718 in 2024, indicating some improvement in cash reserves despite overall liabilities.
• Stable Director and Ownership Structure: The presence of a single managing director with majority control and no noted disqualifications provides governance continuity.

4. Due Diligence Notes:

• Investigate the nature and payment terms of “other creditors” which have grown significantly and contribute heavily to current liabilities.
• Review the company’s business model and revenue generation capacity as turnover figures are not provided, to assess operational sustainability.
• Confirm the company’s ability to service bank loans totaling approximately £15,485 (current and long-term combined) given the negative working capital.
• Assess any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.
• Evaluate management’s plans or strategies to restore profitability and improve the balance sheet position.