Company Number: 13942944

Analysis Date: 2025-07-20 11:33 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent negative net current assets and zero net equity, combined with operating losses and low turnover.

2. Key Concerns:

• Negative working capital: Current liabilities consistently exceed current assets by a material margin (£15,000 deficit in latest accounts), indicating strained liquidity.
• Continuing losses: The company reported a loss of £10,700 for the latest financial year on a turnover of only £21,000, showing unprofitable operations.
• Insufficient equity buffer: Net assets remain at zero, reflecting an absence of shareholder funds to absorb losses or support ongoing operations.

3. Positive Indicators:

• No overdue filings: Both annual accounts and confirmation statement are filed on time, suggesting regulatory compliance and governance diligence.
• Active status with a single controlling director: Clear control under one individual, potentially enabling swift decision-making.
• Ownership of fixed assets: The company holds fixed assets valued at £15,000 which may provide some collateral value.

4. Due Diligence Notes:

• Investigate the nature and realization potential of fixed assets to assess their liquidity value and any encumbrances.
• Review cash flow patterns and creditor agreements to determine if liquidity pressures are temporary or structural.
• Clarify the business model and growth strategy given sharply declining turnover (from £78,801 in 2023 to £21,000 in 2024) and ongoing losses.
• Confirm whether any director loans or related party transactions exist that might impact solvency.
• Assess any contingent liabilities or off-balance sheet obligations despite note indicating none disclosed.