Company Number: 14175327

Analysis Date: 2025-07-29 12:18 UTC

1. Risk Rating: HIGH
   The company demonstrates a precarious financial position with net assets just £7,750 as of June 2024, a significant improvement from a net liability position the prior year, yet still minimal. The large amount of creditors falling due after more than one year (£141,671) relative to current assets and the minimal share capital (£95.49) heightens solvency concerns.

2. Key Concerns:

• Solvency and Leverage: The company carried substantial long-term liabilities exceeding current assets by a large margin in prior years, only slightly improved in the latest accounts, indicating ongoing reliance on creditor financing.
• Liquidity Risk: Current assets dropped sharply from £403,528 to £145,020 while current liabilities reported as only £22,989 (vs. prior £15,165) plus large long-term creditors, raising questions about cash flow sufficiency to meet obligations.
• Limited Capital and Scale: Minimal share capital and being a micro-entity with few employees (5 average) suggests limited operational scale and financial buffer to absorb shocks.

3. Positive Indicators:

• Improved Net Assets: Transition from negative net assets (~-£238k) in prior years to a positive net asset position (£7,750) suggests some correction or repayments of liabilities.
• No Overdue Filings: Company is compliant with filing deadlines, indicating regulatory adherence.
• Active Status and Growth in Staff: Increase in average employees from 3 to 5 may indicate some operational scaling.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£141,671) to assess repayment risk and covenants.
• Clarify the sharp decrease in current assets from £403k to £145k within one year and verify cash flow adequacy.
• Review detailed profit and loss information (not filed publicly) to ascertain profitability and operational sustainability.
• Confirm the basis of valuation of assets and any potential off-balance sheet liabilities.
• Examine the business model and revenue streams under SIC 58290 (Other software publishing) to evaluate market position and growth prospects.
• Review director backgrounds and any related party transactions, especially given the recent changes in directors.