Company Number: 14386360

Analysis Date: 2025-07-29 12:20 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by negative net current assets and shareholders' funds as of the latest accounts. The deterioration from a positive net asset position in 2023 to a negative position in 2024 indicates financial stress.

2. Key Concerns:

• Declining Financial Position: Net current assets declined from -£535 in 2023 to -£2,760 in 2024; overall net assets fell from £479 positive to -£1,343 negative. This signals worsening solvency and potential inability to meet short-term obligations.
• Low Asset Base and Working Capital Deficit: Fixed assets and current assets are minimal (£1,417 and £2,086 respectively in 2024), while current liabilities remain relatively high (£4,846). This working capital deficit may impair operational liquidity.
• Dependence on Director Advances and Small Scale: The company has only one employee and relies on director advances/credits, which were fully repaid in 2024 but could indicate constrained external financing options and limited operational scale.

3. Positive Indicators:

• Timely Filing and Compliance: Accounts and confirmation statements are filed on time with no overdue filings, indicating good regulatory compliance and governance practices.
• Stable Management and Ownership: The company has two directors who are also the primary shareholders (controlling 75-100% combined), providing clear leadership and decision-making continuity.
• Company Status Active and Micro Category: As a micro-entity, the company benefits from simplified reporting requirements and may have manageable operational complexity.

4. Due Diligence Notes:

• Investigate the nature and cause of the sharp decline in current assets and net assets from 2023 to 2024.
• Review cash flow statements and operational cash generation capacity to assess liquidity risk more fully.
• Assess the company’s business model sustainability given the small employee base and low asset base against ongoing liabilities.
• Confirm whether any contingent liabilities or off-balance sheet commitments exist that could exacerbate financial risk.
• Examine the terms and sustainability of director financing and whether the business depends on these for ongoing liquidity.