Company Number: 13619718

Analysis Date: 2025-07-29 16:54 UTC

1. Risk Rating: HIGH
   Justification: The company shows significant negative net current assets and shareholders' funds with increasing current liabilities outstripping current assets. The negative equity position and reliance on director loans raise concerns over solvency and liquidity.

2. Key Concerns:

• Persistent negative net current assets (£-2,087 in 2024) and shareholders’ funds (£-2,187) indicate ongoing losses or capital erosion.
• Current liabilities substantially exceed current assets, raising liquidity risk and potential difficulties meeting short-term obligations.
• Reliance on director loans for ongoing support, as mentioned in the accounting policies, suggests limited external financing and potential going concern risks.

3. Positive Indicators:

• The company is current on statutory filings (accounts and confirmation statements) with no overdue submissions, indicating compliance discipline.
• The small company exemption from audit reduces administrative burden and cost.
• The director continues to adopt the going concern basis, supported by director loans, indicating some management confidence in continuation.

4. Due Diligence Notes:

• Review the nature and terms of the director loans supporting the business and any contingent liabilities attached.
• Investigate the company’s business model and revenue generation plans to assess if losses are temporary and if cash flow is expected to improve.
• Examine trade payables and creditor aging to assess payment patterns and possible creditor pressure.
• Confirm if any related party transactions exist beyond director loans that could impact financial stability.
• Obtain management forecasts or budgets to evaluate the sustainability of operations and potential need for further capital injections.