Company Number: 12924186

Analysis Date: 2025-07-29 12:56 UTC

1. Risk Rating: MEDIUM
   The company demonstrates ongoing operations with filed accounts up to the 2024 fiscal year and no overdue filings, indicating regulatory compliance. However, persistent negative net current assets and current liabilities significantly exceeding current assets highlight liquidity concerns. The modest net asset base and minimal share capital further suggest limited financial buffers.

2. Key Concerns:

• Liquidity Risk: Current liabilities (~£115k) substantially exceed current assets (_{£20k), resulting in large negative working capital (}-£95k), which may impair the company’s ability to meet short-term obligations.
• Solvency Margins: While net assets remain positive (~£4.6k), the small equity base relative to liabilities may limit the company’s resilience to financial shocks.
• Director Changes: Recent resignation of a director (Ms Laura Schofield) who held significant control (25-50% shares) may impact governance or operational continuity; the effect should be assessed.

3. Positive Indicators:

• Regulatory Compliance: Accounts and confirmation statements are up to date with no overdue filings, demonstrating good governance in statutory obligations.
• Stable Asset Base: Fixed assets have remained relatively stable (~£100k), suggesting some tangible investment backing the business.
• Consistent Operations: The company has maintained a stable employee count (2 employees) over recent years, indicating operational continuity.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to understand their composition (e.g., trade creditors, short-term borrowings) and payment terms to assess cash flow pressures.
• Review cash flow statements if available to evaluate operating cash generation and liquidity management.
• Clarify the implications of the director’s resignation on company control and management, including any changes in ownership structure or strategic direction.
• Request further financial details beyond micro-entity accounts to assess profitability, revenue trends, and potential contingent liabilities.
• Confirm if any related party transactions or guarantees exist that could impact financial stability.