Company Number: 13884091

Analysis Date: 2025-07-29 20:24 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net assets and net current liabilities over its reported financial years, indicating solvency concerns and potential inability to meet short-term liabilities. The micro-entity size and limited operational scale amplify the financial fragility.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company has reported net liabilities of £2,753 as of February 2024, improving only marginally from prior years but still negative, highlighting ongoing capitalization issues.
• Liquidity Shortfall: Current liabilities exceed current assets (£12,237 vs. £11,164 in 2024), leading to negative net current assets of £1,073, which may strain operational cash flow.
• Minimal Operational Scale and Single Director Control: With only one employee (the director) and sole shareholder control, there is concentration risk and limited operational resilience or governance oversight.

3. Positive Indicators:

• Timely Filing and Compliance: The company is up to date with both accounts and confirmation statement filings, indicating regulatory compliance and administrative diligence.
• Slight Improvement in Current Assets: Current assets nearly tripled from £4,061 in 2023 to £11,164 in 2024, signaling some improvement in resource availability.
• No Indication of Insolvency Proceedings: The company is active and not subject to liquidation or administration, suggesting ongoing viability despite financial deficits.

4. Due Diligence Notes:

• Examine Cash Flow and Receivables: Detailed cash flow statements and aging of receivables/payables to assess liquidity management and timing of cash inflows/outflows.
• Review Director’s Plans for Capitalization: Investigate whether additional funding or equity injections are planned to rectify the negative net asset position.
• Assess Revenue and Profitability Trends: Limited financial data on turnover or profits; deeper review of income statements and business forecasts is necessary to understand operational sustainability.