Company Number: 13884882

Analysis Date: 2025-07-29 20:08 UTC

1. Risk Rating: HIGH
   Sinple Doncaster Ltd exhibits significant solvency and liquidity concerns, evidenced by materially negative net current assets and shareholders' funds, deteriorating from prior periods. The company’s inability to cover short-term liabilities with current assets is a major red flag.

2. Key Concerns:

• Severe Negative Working Capital: Net current liabilities of approximately £86k as of 2024 indicate cash flow pressures and potential difficulties in meeting short-term obligations.
• Negative Net Assets and Shareholders’ Funds: The company’s net assets declined from -£25,922 in 2023 to -£53,789 in 2024, suggesting ongoing losses and erosion of capital.
• Limited Financial History and Scale: Incorporated in 2022 and classified as a micro-entity, the company has minimal financial track record and modest fixed assets (~£38k), which limits resilience and operational scale.

3. Positive Indicators:

• No Overdue Filings: All accounts and confirmation statements are filed on time, indicating compliance with regulatory obligations.
• Active Online Presence: The company maintains an active website and social media, suggesting ongoing marketing efforts and operational activity.
• Growing Workforce: Employee count increased from 2 to 5 in the latest year, possibly indicating business expansion or scaling efforts.

4. Due Diligence Notes:

• Review detailed profit and loss accounts (not provided) to assess revenue trends, gross margins, and cost structure impacting losses.
• Investigate the nature and terms of current liabilities to understand creditor concentration, payment terms, and potential restructuring risks.
• Ascertain any contingent liabilities or related party transactions, especially given the significant control held by two individuals.
• Understand cash flow dynamics, including receipts, payments, and financing activities to evaluate liquidity management.
• Examine the director’s plans or strategic initiatives for returning to profitability and improving capital structure.