Company Number: 13073782

Analysis Date: 2025-07-20 14:56 UTC

1. Risk Rating: HIGH
   The company shows net liabilities on its balance sheet and has ceased trading as of June 2024, which indicates significant solvency concerns and operational discontinuity.

2. Key Concerns:

• Negative Net Worth: The company reported net liabilities of £22,723 at 31 March 2024, worsening from £10,130 the prior year, reflecting accumulated losses.
• Cessation of Trading / Going Concern: Directors explicitly state that from 28 June 2024 the business ceased to trade and will no longer be a going concern, transferring assets and liabilities to a related company. This strongly suggests financial distress or a planned closure.
• High Director-Related Creditors: The company owes over £350,000 to directors, repayable on demand and interest-free, which may indicate reliance on director loans for liquidity and funding, a potential red flag for external investors.

3. Positive Indicators:

• Timely Filings and Compliance: There are no overdue filings; accounts and confirmation statements are up to date, indicating regulatory compliance.
• Stable Employment: The company maintained a stable workforce (average 8 employees) during the financial year.
• Intangible Assets and Goodwill: The company holds goodwill assets (£121k net), which could represent intangible value from prior business combinations, though this is amortising.

4. Due Diligence Notes:

• Investigate the nature and terms of the intercompany transactions and director loans to understand financial support and repayment plans.
• Review the related company to which business and assets were transferred on 28 June 2024 for continuity of operations and financial health.
• Confirm reasons for cessation of trading and the company’s future plans (e.g., dissolution, restructuring).
• Examine recent cash flow and working capital trends beyond the balance sheet date to assess liquidity risks during the wind-down phase.