Company Number: 13888198

Analysis Date: 2025-07-20 18:45 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities and negative shareholders’ funds indicating financial distress just two years after incorporation.

2. Key Concerns:

• Negative Net Current Assets: The company reported net current liabilities of £17,427 at 29 February 2024, with current liabilities (£12,151 short term plus £52,255 long term) greatly exceeding current assets (including negative debtors). This suggests immediate cash flow pressure.
• Negative Shareholders’ Funds: Equity is negative at £6,808, reflecting accumulated losses or funding shortfalls that undermine the company’s solvency and may limit future borrowing capacity.
• Unusual Debtor Balances: The presence of negative debtor balances (£9,861) is irregular and may indicate accounting anomalies or unresolved receivables issues, which complicate liquidity assessment.

3. Positive Indicators:

• Tangible Fixed Assets Investment: The company has capitalized £62,874 in plant and equipment, indicating some investment in operational capacity.
• No Overdue Filings: Accounts and confirmation statements are filed on time, suggesting regulatory compliance and good governance in reporting.
• Increasing Workforce Size: Employee count has increased from 1 to 2, which could indicate operational expansion or increased business activity.

4. Due Diligence Notes:

• Investigate the nature and cause of negative debtor balances to clarify if these are accounting errors, prepayments, or other anomalies.
• Review cash flow statements and bank reconciliations to confirm actual liquidity status beyond balance sheet snapshots.
• Assess the terms and implications of long-term creditors (£52,255) to understand repayment obligations and refinancing risks.
• Evaluate the business model and contracts underpinning asset investments to determine if the company can generate sufficient returns to improve financial health.
• Confirm no director disqualifications or compliance issues beyond those visible in filings.