Company Number: 13553889

Analysis Date: 2025-07-20 15:57 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net assets and net current liabilities over multiple years, indicating ongoing solvency and liquidity challenges. Despite being active and compliant with filings, the financial position suggests difficulty in meeting short-term obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net assets have been negative for all reported years, deteriorating to -£26,187 in 2024, showing accumulated losses and eroded equity.
• Significant Net Current Liabilities: Current liabilities exceed current assets by £127,794 in 2024, a worsening trend that signals liquidity pressure and potential cash flow issues.
• Dependence on Director Loans and Creditors: The presence of director loans (£11,820) and large trade creditors (£121,506) indicates reliance on related-party financing and external creditors to fund operations, which could be unsustainable if cash inflows do not improve.

3. Positive Indicators:

• Timely Filing and Compliance: The company is up to date with its accounts and confirmation statement filings, with no overdue returns, indicating sound governance practice.
• Stable Operational Headcount: Average employee numbers remained stable at 5, suggesting operational consistency and controlled overheads.
• Fixed Asset Base: The company maintains a tangible and intangible asset base (£101,607), which could provide some collateral or operational utility.

4. Due Diligence Notes:

• Investigate Business Model Viability: Given the negative equity and cash flow concerns, review the company’s revenue streams, profitability outlook, and strategic plans to restore financial health.
• Examine Director Loan Terms and Related Party Transactions: Assess the nature and terms of director loans and creditor relationships to understand potential risks and contingencies.
• Assess Cash Flow Management: Analyze cash flow statements and working capital cycle to identify timing or structural issues impacting liquidity.
• Confirm No Pending Regulatory or Legal Issues: While filings are current, verify absence of enforcement actions or disputes that could affect company stability.