Company Number: 14015284

Analysis Date: 2025-07-29 16:41 UTC

1. Risk Rating: HIGH
   The company shows significant deterioration in net assets from £30,575 in 2024 to £9,890 in 2025, considerable reliance on director’s loan account increasing sharply (from £2,637 to £20,306 within one year), and sizeable finance lease obligations that remain substantial relative to assets. These factors raise concerns about solvency and financial stability.

2. Key Concerns:

• Sharp decline in net assets and equity (almost two-thirds reduction in one year) suggests erosion of financial buffer.
• Heavy reliance on director’s loan account as a current liability (over £20k) indicates potential liquidity stress and dependence on related party funding.
• Large finance lease obligations (£26k+ net of future charges) relative to the asset base may strain cash flows, especially given limited current assets and minimal debtor balances.

3. Positive Indicators:

• The company is current on filings with no overdue accounts or confirmation statements, indicating compliance with regulatory requirements.
• Positive net current assets as of 2025, albeit small (£1,566), indicating some short-term liquidity, supported by cash holdings (£25,759).
• Business has tangible fixed assets that have some residual value (motor vehicles, fixtures), providing some operational base.

4. Due Diligence Notes:

• Investigate reasons for the sharp decline in net assets and equity in the latest financial year; review profit and loss details which were not filed here.
• Review terms and conditions of director’s loan account and finance leases to understand repayment schedules, interest charges, and covenant risks.
• Assess ongoing cash flow forecasts and contract revenue recognition given the industry classification (transportation support activities) to evaluate operational sustainability.
• Confirm no hidden contingent liabilities or off-balance sheet exposures given the aggressive balance sheet movements.