Company Number: 14119707

Analysis Date: 2025-07-29 14:27 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant and worsening negative net current assets and net liabilities over the past years, indicating solvency concerns. Current liabilities substantially exceed current assets, suggesting an inability to meet short-term obligations without external financing.

2. Key Concerns:

• Persistent negative net current assets of £78,314 as at 30 November 2024, worsening from £47,785 the prior year, highlighting increasing working capital deficits.
• Negative shareholders’ funds/net liabilities position, indicating the company’s liabilities exceed its assets, which raises solvency and going concern questions.
• Limited scale and operational footprint with only 3 employees and micro-entity accounting, limiting transparency and potentially restricting operational flexibility and access to capital.

3. Positive Indicators:

• Company is current on all filing obligations (accounts and confirmation statements), demonstrating regulatory compliance and governance discipline.
• Controlled by a single significant shareholder (Link Business Holdings Limited) with 75-100% ownership and controlling voting rights, which may facilitate decisive management and financial support if needed.
• The business operates in a manufacturing niche (SIC 28490 - Manufacture of other machine tools), potentially benefiting from specialized demand and barriers to entry.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess the risk of creditor enforcement or demands for repayment.
• Review cash flow forecasts and any external financing arrangements or shareholder support to understand liquidity management.
• Understand business model sustainability and revenue trends given the persistent losses and negative equity, including client base, order book, and market conditions.
• Assess relationship and financial support from Link Business Holdings Limited as the controlling shareholder.
• Confirm no undisclosed contingent liabilities or related party transactions that could exacerbate financial risks.