Company Number: 12666099

Analysis Date: 2025-07-20 11:16 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, evidenced by large net current liabilities and negative net assets that have materially deteriorated in the latest year. The scale of current liabilities relative to current assets, coupled with negative shareholders’ funds, signals a high risk of financial distress.

2. Key Concerns:

• Severe Liquidity Deficit: As of 31 March 2024, current liabilities (£474,196) overwhelmingly exceed current assets (£87,679), resulting in net current liabilities of £386,517. This negative working capital position indicates difficulty meeting short-term obligations.
• Negative Net Assets and Shareholders’ Funds: Net assets stand at -£356,401, reflecting accumulated losses and erosion of equity, which undermines the company's financial stability.
• Material Uncertainty on Going Concern: The directors explicitly disclose material uncertainties regarding the company’s ability to continue as a going concern, highlighting substantial operational and financial risks.

3. Positive Indicators:

• Active Trading Status with No Filings Overdue: The company is active and has complied with filing deadlines, suggesting administrative discipline.
• Increasing Scale of Operations: The average number of employees increased from 1 to 11 year-on-year, which may reflect business growth or scaling efforts.
• Significant Intangible and Tangible Assets: The company invested in website development and equipment (£30,116 total fixed assets), indicating capital expenditure to support operations.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities totaling nearly half a million pounds, particularly tax and social security liabilities (£240,114) and other creditors (£181,629), to assess any imminent payment pressures or disputes.
• Examine cash flow statements and management forecasts not included in the accounts to evaluate short-term liquidity planning and potential funding sources.
• Review the business model and client contracts to understand revenue stability and recovery prospects, especially since turnover and profitability figures are not disclosed here.
• Clarify the relationship and financial impact of the controlling shareholder entities (Slhq Holdings Limited and Stephenson Law Limited), including any financial support arrangements or intercompany balances.