Company Number: 14225917

Analysis Date: 2025-07-20 12:14 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, with persistent negative net assets and negative working capital over consecutive years. The financial position deteriorated from a net asset deficit of £9,389 in 2023 to £20,472 in 2024, indicating increasing liabilities exceeding assets. The absence of an audit and minimal fixed assets further raises concerns about financial robustness.

2. Key Concerns:

• Solvency and Capital Deficiency: The company’s net liabilities nearly doubled within one year, indicating ongoing losses or accumulation of debts that exceed its asset base.
• Liquidity Issues: Net current liabilities of £20,905 suggest the company may struggle to meet short-term obligations as they fall due.
• Operational Scale and Sustainability: With only one employee and minimal fixed assets, the company’s operational capacity appears limited. The director’s occupation outside typical business management (bus driver) may suggest limited operational expertise or involvement.

3. Positive Indicators:

• Compliance: The company is up to date with both accounts and confirmation statement filings, with no overdue documents or apparent regulatory breaches.
• Clear Ownership and Control: Ownership and voting rights are firmly held by two individuals, providing clear governance and decision-making lines.
• Exemption from Audit: While this limits financial detail, it is consistent with micro-entity status and small scale, indicating legal compliance with reporting requirements.

4. Due Diligence Notes:

• Financial Sustainability: Investigate the nature of liabilities driving negative net assets and whether there is a plan to reverse the losses or refinance debt.
• Business Model Viability: Understand current and projected revenue streams, client base, and market positioning given the SIC codes related to research and engineering design.
• Director and Management Expertise: Clarify the director’s involvement and capability in managing the company’s specialized activities, considering the director’s stated occupation.
• Related Party Transactions: Review any transactions or financial support from the significant controllers to the company to assess potential informal funding or guarantees.