Company Number: 13120570

Analysis Date: 2025-07-20 14:11 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and persistent working capital deficits, indicating significant solvency and liquidity concerns.

2. Key Concerns:

• Negative shareholders' funds worsening from -£1,370 (2023) to -£5,628 (2024) suggest ongoing losses or erosion of equity.
• Consistent net current liabilities around -£85k to -£90k and low current assets (cash under £4k) compared to substantial current liabilities (~£93k) raise liquidity risk.
• Significant long-term debt (£196k bank loans) relative to fixed assets (£280k) with no apparent asset revaluation or disposals reduces flexibility and increases financial leverage risk.

3. Positive Indicators:

• The company holds tangible fixed assets of £280k, which may provide collateral or resale value.
• Accounts and confirmation statements are filed on time, indicating regulatory compliance and good governance practices.
• Directors have been consistent since incorporation with no public disqualification records, supporting stable management oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of the bank loans to assess repayment schedules and covenants.
• Review detailed profit and loss accounts to understand causes of negative reserves and assess revenue generation and expense control.
• Confirm the valuation basis and marketability of fixed assets to gauge potential recovery in distress scenarios.
• Examine cash flow forecasts and working capital management plans to evaluate operational sustainability.