Company Number: 13516017

Analysis Date: 2025-07-29 13:57 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by large net current liabilities and negative shareholders' funds. Despite director assertions on going concern, the financial position suggests material financial distress.

2. Key Concerns:

• Severe negative net current assets of £876,609 against minimal current assets (£18,955) and very high current liabilities (£895,564) as of July 2024, indicating an inability to meet short-term obligations.
• Negative shareholders’ funds of £854,646, signaling accumulated losses and erosion of equity capital, which raises questions about long-term sustainability.
• Substantial related party creditor balances (£792,129) suggesting reliance on intra-group or connected party funding to maintain operations, which may not be sustainable or indicative of financial weakness.

3. Positive Indicators:

• The company is classified as a small private limited company and is compliant with filing deadlines for accounts and confirmation statements, indicating regulatory compliance.
• The directors have included a going concern statement supported by anticipated continued director and connected company support, which may provide short-term operational stability.
• The company has tangible fixed assets (£21,964), which potentially provide some asset backing, albeit limited compared to liabilities.

4. Due Diligence Notes:

• Verify the nature and terms of the related party balances to understand if these represent loans, trade payables, or other obligations and assess their collectability or repayment terms.
• Review cash flow forecasts and budgets to evaluate the directors’ basis for the going concern assertion given the negative working capital.
• Investigate the business model and revenue streams as financial statements do not disclose profit and loss details, which limits assessment of operational performance and sustainability.
• Confirm no director disqualifications or governance issues given multiple recent director appointments in late 2023; ensure directors have capacity to manage turnaround if needed.