Company Number: 13144269

Analysis Date: 2025-07-29 13:32 UTC

1. Risk Rating: HIGH
   The company exhibits a significant negative net asset position, with net liabilities increasing from -£2,161 in 2023 to -£5,605 in 2024. Current liabilities exceed current assets, indicating poor liquidity. The presence of long-term liabilities and recurring losses raises solvency concerns.

2. Key Concerns:

• Negative Net Assets and Shareholders' Deficit: Shareholders’ funds have deteriorated substantially, indicating cumulative losses and erosion of equity capital.
• Liquidity Shortfall: Current assets (£330) are insufficient to cover current liabilities (£2,405), with only £10 in cash, suggesting potential cash flow difficulties to meet short-term obligations.
• Long-term Debt Burden: Non-current liabilities remain at £3,530, which combined with negative equity, signals financial distress and potential solvency risk without external support.

3. Positive Indicators:

• Compliance and Filing Status: The company is up to date with both accounts and confirmation statement filings, indicating regulatory compliance.
• Director Support Statement: The director has confirmed going concern based on personal support for at least 12 months, which may provide temporary operational stability.
• Small Company Reporting: Being classified as a small company allows exemption from audit, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature and terms of the £3,530 long-term liabilities to assess repayment obligations and associated risks.
• Confirm the director’s capacity and willingness to continue providing financial support as stated in the going concern note.
• Review operational cash flow trends and revenue generation capability given the minimal cash and declining stock levels.
• Evaluate whether the company has any contingent liabilities or off-balance sheet exposures not reflected in the accounts.
• Assess the business model sustainability within the specialised design activities sector given the current financial position and lack of employees.