Company Number: 13659367

Analysis Date: 2025-07-20 18:49 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile due to persistent negative net current assets, very limited cash reserves, and minimal net equity, indicating potential solvency and liquidity challenges.

2. Key Concerns:

• Negative Working Capital: The company’s net current liabilities increased to £3,013 as of 31 October 2023, worsening from £2,388 the prior year, which signals ongoing liquidity stress and challenges meeting short-term obligations.
• Minimal Cash Holdings: Cash at bank dropped sharply from £1,144 in 2022 to only £76 in 2023, raising concerns about the company’s ability to cover immediate expenses and operational costs.
• Very Low Equity Base: Shareholders’ funds remain nominal at £100 throughout the period, suggesting limited financial buffer to absorb losses or invest in growth.

3. Positive Indicators:

• Consistent Filing Compliance: The company is up to date with its filing obligations, including accounts and confirmation statements, which reflects regulatory compliance and governance diligence.
• Growth in Tangible Assets: Net fixed assets increased from £2,488 to £3,113, indicating some investment in long-term operational capacity.
• Stable Director and PSC Structure: The company has a stable director and two identified persons with significant control, which may facilitate clear decision-making.

4. Due Diligence Notes:

• Investigate the company’s cash flow generation and sources of working capital given the low cash reserves and negative net current assets.
• Review the nature of current liabilities to assess any concentration risk or overdue creditor payments.
• Understand the business model and revenue streams, as financial data alone offers limited insight into operational sustainability.
• Examine the depreciation policy and asset utilization to confirm the tangible asset values are appropriate and productive.
• Verify that there are no contingent liabilities or off-balance sheet obligations not disclosed in the accounts.