Company Number: 13124380

Analysis Date: 2025-07-29 20:10 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its worsening liquidity position and limited financial buffer. The current liabilities have more than doubled compared to the previous year while current assets have significantly declined, resulting in a negative net current assets figure (-£19,611). Although net assets remain positive at £12,559, the sharp deterioration in working capital raises concerns about the company's ability to meet short-term obligations.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£20,204) exceed current assets (£593) substantially as of 2024, indicating potential cash flow difficulties to cover immediate debts.
• Declining Net Assets: Net assets declined by almost half from £24,317 in 2023 to £12,559 in 2024, suggesting erosion of the company’s equity base.
• Limited Share Capital and Reserves: Share capital is nominal (£100) and the company only has 2 employees, which may restrict operational scalability and financial resilience.

3. Positive Indicators:

• Fixed Asset Stability: Fixed assets remained stable at £32,170 over two years, indicating no recent write-downs or disposals of long-term assets.
• Timely Compliance: The company is current on statutory filings with no overdue accounts or confirmation statements, showing good regulatory compliance.
• Clear Industry Focus: The company operates in niche waste clearance and hazardous waste treatment sectors with an active, professional website and valid VAT registration, suggesting an operational business model.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to determine if there are any overdue or contentious debts impacting liquidity.
• Review recent cash flow statements or management accounts to assess ongoing operational cash generation or potential funding requirements.
• Examine contracts, customer base, and revenue trends to confirm business sustainability and growth prospects in a competitive waste clearance market.
• Validate the directors’ plans to improve liquidity and restore net asset levels, including any capital injections or restructuring measures.