Company Number: 12921255

Analysis Date: 2025-07-29 17:43 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and shareholder funds, indicating solvency. However, recurring net current liabilities and significant secured debt backed by director guarantees introduce liquidity and financial risk concerns.

2. Key Concerns:

• Negative net current assets for multiple years suggest tight short-term liquidity and potential cash flow pressures.
• High secured borrowings (£50,731) against fixed assets and personal guarantees pose refinancing and contingent liability risks.
• Substantial amounts owed to the director (£55,675) within creditors may indicate reliance on director funding, which could affect financial independence and governance.

3. Positive Indicators:

• Consistent growth in net assets from £89 at incorporation to £54,772, demonstrating accumulated retained earnings and business progress.
• Cash balances remain reasonably healthy (£52,993 at latest period), providing some buffer against short-term obligations.
• No overdue filings or compliance issues reported, indicating good regulatory standing.

4. Due Diligence Notes:

• Review the nature and terms of secured loans and hire purchase agreements, especially regarding covenants and asset coverage.
• Investigate the director-related creditor balances to understand repayment terms and any risks of withdrawal or capital calls.
• Assess cash flow statements and profit and loss accounts (not provided) to better understand operational profitability and liquidity trends.