Company Number: 13265873

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant financial distress, demonstrated by large net liabilities of £556,151 as of 31 March 2023 and negative net current assets of £56,938. The overdue accounts filing also raises governance concerns.

2. Key Concerns:

• Severe Solvency Issues: The company’s net liabilities have increased from £369,604 in 2022 to £556,151 in 2023, indicating worsening financial health and potential inability to meet long-term obligations.
• Liquidity Constraints: Current liabilities vastly exceed current assets (£609,631 vs. £6,870), resulting in negative working capital, which suggests cash flow difficulties and challenges in meeting short-term debts.
• Overdue Accounts Filing: The latest accounts filing is overdue, which may imply administrative or compliance weaknesses and raises questions about management effectiveness and transparency.

3. Positive Indicators:

• Active Status with No Formal Insolvency Proceedings: The company remains active and is not currently in liquidation, administration, or receivership, allowing time for possible recovery or restructuring.
• Experienced Directors and Secretaries: The presence of consistent directors with no noted disqualifications suggests an established management team.
• Micro-Entity Reporting: As a micro-entity, the company benefits from simplified reporting requirements, which may reduce compliance burdens.

4. Due Diligence Notes:

• Investigate Causes of Financial Deterioration: Review detailed financial statements, cash flow statements, and management commentary to understand drivers of escalating liabilities and declining assets.
• Assess Creditors and Debt Structure: Clarify the nature of the significant long-term creditors (£609,631), including repayment terms and any covenants or security interests.
• Examine Governance and Compliance Practices: Determine reasons for overdue accounts filing and evaluate internal controls to ensure timely statutory compliance.
• Evaluate Business Model and Revenue Streams: Given the SIC code 62090 (other IT services), assess market position, client base, and operational sustainability amid financial strain.
• Confirm No Director Disqualifications or Regulatory Issues: Verify director backgrounds for any undisclosed legal or regulatory concerns impacting company stability.