Company Number: 12766424

Analysis Date: 2025-07-19 11:51 UTC

1. Risk Rating: HIGH
   Justification: The company demonstrates persistent net current liabilities and negative net assets over multiple financial years, indicating solvency challenges. The micro-entity accounts show total net liabilities of £2,471 as of 30 September 2024, worsening slightly from prior years. This suggests the company is not in a strong financial position to meet its obligations.

2. Key Concerns:

• Solvency Risk: The consistent negative net current assets and net liabilities indicate the company may struggle to meet short-term debts, raising concerns about its financial viability.
• Liquidity Concerns: Current liabilities consistently exceed current assets, implying potential cash flow difficulties despite a stable current asset figure (£20,100) likely tied up in non-cash components.
• Operational Stability: The company operates in a niche sector (SIC 96090 - other service activities not elsewhere classified) with only two employees, and limited financial scale, which may constrain growth and resilience.

3. Positive Indicators:

• Compliance: No overdue filings are noted for accounts or confirmation statements, indicating good regulatory compliance and corporate governance.
• Stable Staffing: The company maintains a small, consistent workforce, which may support controlled operating expenses.
• Ownership and Management: Presence of multiple directors and a corporate director could provide diversified oversight.

4. Due Diligence Notes:

• Investigate the composition of current assets to determine liquidity quality—are these cash equivalents or receivables/inventories that may not be readily convertible?
• Review cash flow statements or management accounts if available to assess ongoing operational cash flow and working capital management.
• Clarify the nature of liabilities due within one year to evaluate potential refinancing or settlement risks.
• Understand the business model and revenue generation capability given the negative net assets despite stable current asset figures.
• Examine related party transactions, particularly given multiple directors with shared addresses, to assess any governance or conflict of interest issues.