Company Number: 13267017

Analysis Date: 2025-07-20 18:08 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets and increasing liabilities exceeding assets, indicating solvency concerns. The financial statements reveal that total liabilities surpass total assets by a substantial margin, a critical red flag for financial stability.

2. Key Concerns:

• Negative Net Assets: The balance sheet for 2024 reports net assets of -£41,108, a sharp decline from -£22,201 in 2023 and from positive net assets in 2021, signaling deteriorating financial health.
• High Long-term Liabilities: Creditors due after more than one year increased to £54,947 in 2024 from £46,680 in 2023, suggesting rising debt burdens that may be difficult to service.
• Declining Current Assets and Net Current Assets: Current assets decreased markedly from £13,299 in 2023 to £4,784 in 2024, and net current assets turned negative by -£55,253 in 2024 compared to -£44,613 in 2023, indicating liquidity stress and potential cash flow issues.

3. Positive Indicators:

• Consistent Fixed Assets: Fixed assets have remained stable at £69,092, which may represent property holdings consistent with the business's SIC classification in real estate.
• No Overdue Filings: The company’s accounts and confirmation statements are filed on time, reflecting compliance with statutory requirements.
• Established Management Team: Directors have been in place since incorporation in 2021, suggesting stable leadership.

4. Due Diligence Notes:

• Review Debt Structure: Investigate the nature and terms of the long-term liabilities to assess repayment obligations and refinancing risks.
• Cash Flow Analysis: Obtain cash flow statements to evaluate operating liquidity and ability to meet short-term obligations given negative net current assets.
• Business Model and Revenue Streams: Clarify income sources and sustainability, especially considering the company's micro-entity status and limited employee count (2 employees).
• Potential Director Guarantees or Related Party Transactions: Given the small management team and financial position, verify if directors have provided personal guarantees or if related-party transactions exist that could affect risk.
• Examine Future Plans: Determine if there are strategic plans or capital injections planned to address the negative equity and liquidity issues.