Company Number: 14192260

Analysis Date: 2025-07-19 11:54 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net current asset position and negative shareholders’ funds over consecutive years, indicating ongoing financial distress and a potential inability to meet short-term obligations. The small scale and very limited cash reserves exacerbate liquidity concerns.

2. Key Concerns:

• Negative Working Capital: Net current liabilities increased from £1,056 in 2023 to £2,221 in 2024, signaling worsening liquidity and potential difficulties in paying creditors.
• Negative Shareholders’ Funds: Persistent negative equity (approximately £2,222 in 2024) suggests accumulated losses and insufficient capital to absorb further losses.
• Minimal Cash Reserves: Cash on hand declined sharply from £2,137 in 2023 to £222 in 2024, which could impair the company’s ability to cover immediate expenses or unexpected costs.

3. Positive Indicators:

• Compliance and Filing Status: The company is up to date with both its accounts and confirmation statement filings, which implies regulatory compliance and good governance practices.
• Small Company Exemption: The filing under the small company regime suggests a lean operational structure with limited complexity.
• Ongoing Business Activity: The company remains active, with a live website and active contact details, indicating operational continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of creditors totaling £7,543 to assess urgency and ability to negotiate payment terms.
• Review the company’s business model, revenue streams, and cash flow forecasts to understand operational viability and plans for returning to profitability.
• Verify the director's plans or external financing arrangements to address negative equity and liquidity shortages.
• Assess any contingent liabilities or off-balance-sheet obligations not disclosed in the accounts.
• Consider director background and conduct records to ensure no governance or compliance risks.