Company Number: 13273654

Analysis Date: 2025-07-29 14:56 UTC

1. Risk Rating: HIGH
   The company’s financial position as of the latest accounts dated 31 March 2024 shows net current liabilities of £5,471 and negative shareholders’ funds of £425. This deterioration from positive net assets and shareholders’ funds in the prior years indicates solvency concerns.

2. Key Concerns:

• Declining Solvency: Shareholders’ funds turned negative in the latest year, signaling that total liabilities now exceed total assets. This is a critical red flag for financial stability.
• Liquidity Strain: Cash holdings have drastically reduced to £625 from £11,918 the previous year, while current liabilities more than doubled to £27,259. This suggests cash flow stress and potential difficulties meeting short-term obligations.
• Rising Creditors: Significant increase in amounts due within one year, including directors’ current accounts and other creditors, may indicate delayed payments or reliance on creditors to fund operations.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating regulatory compliance and governance discipline.
• Continuity of Management: The sole director has been in place since incorporation, which may provide operational stability and consistent oversight.
• Small Company Filing Status: The company is classified as small with Total Exemption Full accounts, reducing complexity and compliance costs.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in cash reserves and the doubling of current liabilities to assess cash flow management and creditor relationships.
• Review the nature and collectability of debtors (£21,163) to verify if receivables are recoverable or if there are potential bad debts.
• Confirm the company’s business model viability given the negative net assets and assess any plans for recapitalization or restructuring.
• Examine director loans and related party transactions reflected in directors’ current accounts to ensure no conflicts or undue financial risk.
• Consider obtaining management accounts or cash flow forecasts to evaluate ongoing operational performance and going concern assumptions detailed by the director.