Company Number: 13175074

Analysis Date: 2025-07-20 17:39 UTC

1. Risk Rating: HIGH
   The company exhibits signs of financial distress primarily due to persistent negative net current assets indicating liquidity issues. Despite being active and compliant with filing deadlines, the company's working capital position deteriorated over the last two years, raising concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company reported net current liabilities of £19,813 in 2024 and £22,268 in 2023, which indicates it does not have sufficient short-term assets to cover its short-term liabilities.
• Low Net Asset Base: Although net assets increased slightly to £2,159 in 2024 from £135 in 2023, the absolute value remains very low, suggesting a fragile equity position and limited buffer against losses.
• Absence of Profit and Loss Disclosure: The company has not filed a Profit and Loss account as permitted under the micro-entity regime, limiting visibility into operational profitability and cash flow generation.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with both accounts and confirmation statement filings, indicating good regulatory compliance and governance discipline.
• Stable Employee Base: The average number of employees remained steady at 5, suggesting operational continuity.
• Active Website and Contact Information: The presence of an active website and contact details supports ongoing business activity and customer engagement.

4. Due Diligence Notes:

• Obtain the company's internal management accounts or full profit and loss statements to better assess operational profitability and cash flow dynamics.
• Investigate the nature and terms of the current liabilities to understand if they are trade payables, short-term borrowings, or other obligations that may affect liquidity risk.
• Review any available bank facilities or credit arrangements to determine the company's access to working capital support.
• Explore any available information on customer contracts, order book, and revenue trends to gauge operational sustainability.
• Confirm the background and experience of the directors given the small asset base and potential operational risks.