Company Number: 13884045

Analysis Date: 2025-07-29 18:27 UTC

1. Risk Rating: MEDIUM
   Justification: The company is active and filing returns on time, but exhibits liquidity concerns with significantly negative net current assets over multiple years. Fixed assets provide a strong asset base, but current liabilities are high relative to current assets and cash on hand, indicating potential short-term solvency risks.

2. Key Concerns:

• Persistent negative net current assets (£-168k in 2024), indicating potential cash flow and working capital issues that could affect meeting short-term obligations.
• High current liabilities (£279k) relative to cash reserves (£28.5k) and debtors, suggesting potential reliance on refinancing or additional funding to maintain operations.
• Limited operating history (incorporated in 2022) restricts visibility on business sustainability and profitability trends.

3. Positive Indicators:

• Net assets and shareholders’ funds have increased from £28k in 2023 to £46k in 2024, reflecting some retained earnings or asset appreciation.
• The company owns substantial fixed assets (£494k), mainly tangible, which could provide collateral or liquidation value if needed.
• No overdue filings or compliance issues noted, indicating good regulatory adherence and governance.
• Control is clearly held by a single director and shareholder, streamlining decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities to understand repayment schedules and creditor exposure.
• Review cash flow statements and forecasts to gauge the company’s ability to manage liquidity pressures.
• Assess revenue streams and profitability metrics (not provided here) to evaluate operational sustainability.
• Confirm the valuation and usability of fixed assets in ongoing operations or refinancing.
• Consider director background checks for any undisclosed risks despite no current disqualifications noted.
• Clarify the reason for the name/address discrepancies between registered office and filing addresses to ensure governance transparency.