Company Number: 12761308

Analysis Date: 2025-07-29 20:21 UTC

1. Risk Rating: HIGH
   The company exhibits persistent and increasing negative net assets and net current liabilities over multiple years, indicating solvency concerns and financial distress despite being a micro-entity.

2. Key Concerns:

• Solvency Risk: The net liabilities have worsened from -£883 in 2020 to -£2,371 in 2023, signaling an erosion of equity and potential inability to meet long-term obligations.
• Liquidity Concerns: Consistently negative net current assets (working capital deficit of -£3,671 in 2023) suggest the company may struggle to cover short-term liabilities as they fall due.
• Operational Stability: The company has a very small asset base (£1,300 fixed assets) and current assets (£745), with only two employees on average, indicating limited operational scale and possible vulnerability to business disruptions.

3. Positive Indicators:

• Compliance: The company is current with all filing deadlines for accounts and confirmation statements, indicating proper regulatory compliance to date.
• Director Stability: The two directors have been in place since incorporation with no indication of disqualification or governance issues.
• Clear Business Activity: The company operates in a defined niche—hire of portable miniature golf courses—which may offer some market differentiation.

4. Due Diligence Notes:

• Investigate the company’s cash flow statements and profit & loss accounts (not provided) to understand if losses are ongoing and how cash is managed.
• Review directors’ plans or strategies to address the growing deficit and improve financial health.
• Confirm if there are any contingent liabilities or off-balance sheet obligations that could exacerbate financial risks.
• Establish the relationship and financial support (if any) from shareholders given the negative equity position.
• Assess the market demand and competitive positioning within the amusement and recreation sector (SIC 93290).