Company Number: 14160632

Analysis Date: 2025-07-29 17:40 UTC

1. Risk Rating: HIGH
   The company shows significant worsening liquidity and net asset position over the last two years, with net current assets and net assets turning substantially negative in the most recent year. This raises concerns about its ability to meet short-term liabilities and overall solvency.

2. Key Concerns:

• Severe Liquidity Deficit: Current liabilities (£7,109) far exceed current assets (£487) as of June 2024, indicating an inability to cover short-term debts with liquid assets.
• Negative Net Assets: Net assets declined from positive £1,017 in 2023 to negative £8,302 in 2024, suggesting accumulated losses or unrecognized liabilities.
• Rapid Deterioration: The dramatic negative swing in net current assets and net assets within just one year since incorporation (2022) suggests operational or financial distress.

3. Positive Indicators:

• No Filing Delays: The company has up-to-date filings for both accounts and confirmation statements, showing compliance with statutory requirements.
• Active Status: The company remains active and not subject to liquidation or administration, indicating no formal insolvency proceedings.
• Small Employee Base: With an average of 4 employees, operating costs may be limited, which might allow some operational flexibility.

4. Due Diligence Notes:

• Investigate reasons for the sharp decline in net assets and liquidity in the latest financial year, including any large one-off expenses, write-downs, or undisclosed liabilities.
• Review cash flow statements and bank statements (not provided) to assess actual cash availability and operational cash burn.
• Examine directors’ plans for addressing the negative net asset position and their ability to inject capital or restructure debts.
• Verify if any contingent liabilities or related party transactions exist that might impact financial stability.
• Consider background checks on directors and any potential regulatory or compliance issues beyond what is disclosed.