Company Number: 13161417

Analysis Date: 2025-07-29 13:33 UTC

1. Risk Rating: HIGH
   The company’s financials reveal a marked deterioration over recent years culminating in negative net assets at the latest year end. Current liabilities remain substantial relative to current assets, and the overall net asset position has moved from positive to negative, indicating solvency concerns.

2. Key Concerns:

• Negative Net Assets (Solvency Risk): As of 31 January 2024, net assets are reported at -£8,607, a decline from previous positive balances. This suggests liabilities exceed assets and raises questions about the company’s ability to meet all obligations if liabilities crystallize.
• Long-Term Creditors Exceeding Net Assets: Creditors due after more than one year total approximately £303k, which is significant relative to the total asset base, implying possible structural leverage issues.
• Declining Working Capital: Although net current assets remain positive (£294k), there has been a substantial reduction from prior years, signaling tightening liquidity. This may impair operational flexibility and day-to-day cash flow management.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with both accounts and confirmation statement submissions, demonstrating regulatory compliance.
• Stable Employee Count: The company maintains a small but consistent workforce (3 employees), which may indicate controlled operational scale.
• Active Status with Directors in Place: The company is currently active with two directors appointed since incorporation, suggesting ongoing governance and oversight.

4. Due Diligence Notes:

• Examine Creditor Terms and Maturity Profiles: Further detail on the nature of the long-term creditors and repayment schedules is needed to assess refinancing risks.
• Review Cash Flow and Profitability Trends: The absence of detailed profit and loss data limits assessment of operational sustainability; obtaining management accounts or further disclosures is advisable.
• Assess Directors’ Plans for Addressing Negative Equity: Inquiry into management’s strategy to restore equity and improve financial health is critical.
• Confirm No Related Party Transactions or Contingent Liabilities: Given the low equity and high liabilities, related party risks or off-balance-sheet obligations should be investigated.