Company Number: 13459049

Analysis Date: 2025-07-20 18:27 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns evidenced by persistent negative net assets and negative shareholders' funds. Current liabilities exceed current assets by a substantial margin, indicating liquidity stress. The financial position worsened from the prior year, signaling increasing financial strain.

2. Key Concerns:

• Negative net assets of £142,419 as of June 2024, a deterioration from £168,717 in the previous year, implying erosion of equity capital.
• Negative net current assets of £207,356 due to current liabilities (£211,840) overwhelmingly exceeding current assets (£4,484), highlighting an inability to meet short-term obligations comfortably.
• Large long-term creditors (£513,712) persist without reduction, suggesting ongoing debt burden and potential refinancing or repayment risk.

3. Positive Indicators:

• Fixed assets remain stable at £578,649, representing a tangible asset base which could potentially be monetized to address liabilities.
• No overdue filings or regulatory compliance issues noted; accounts and confirmation statement are up to date.
• The company is active and maintains a small but consistent workforce (1 employee), indicating ongoing operational activity.

4. Due Diligence Notes:

• Investigate the nature and terms of the creditors due after more than one year (£513,712) to assess refinancing risk or likelihood of renegotiation.
• Examine cash flow statements if available to evaluate actual liquidity flows and operational cash generation.
• Assess the business model sustainability given the negative equity and recurring liquidity deficits, including revenue generation and profitability trends.
• Review director and significant control persons’ backgrounds for any governance or conduct concerns that may impact company stability.
• Confirm whether the fixed assets are encumbered or available to secure liabilities.