Company Number: 14227062

Analysis Date: 2025-07-20 15:59 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in financial position with net liabilities of £766 for the year ended 31 July 2024, compared to net assets of £6,456 in the prior year. Current liabilities notably exceed current assets by £34,005, indicating potential liquidity stress. The negative working capital and net asset position raise concerns about solvency and ongoing operational viability.

2. Key Concerns:

• Solvency Risk: The company’s total net liabilities position, combined with negative net current assets, suggests it may struggle to meet short-term and longer-term obligations.
• Liquidity Issues: Current liabilities of £109,712 outstrip current assets of £75,707, implying cash flow constraints and risk of inability to pay creditors on time.
• Deteriorating Financial Health: The sharp decline from positive net assets in 2023 to a net liability position in 2024 requires investigation; this could indicate operational losses, asset write-downs, or increased borrowing.

3. Positive Indicators:

• Compliance: The company is up to date with filing accounts and confirmation statements, with no overdue reports, indicating good regulatory compliance.
• Micro-entity Status: Operating as a micro-entity may reduce administrative burden and costs, which could help financial sustainability if business performance improves.
• Single Employee: A very low headcount indicates a lean operation which may help control expenses.

4. Due Diligence Notes:

• Investigate the nature of the increase in current liabilities and reason for decline in fixed assets. Are there large creditor balances or loans maturing?
• Review the profit and loss account for the period to understand operational performance and reasons for losses (if any).
• Assess the company’s cash flow forecasts and plans to improve liquidity or restructure liabilities.
• Confirm whether there are any contingent liabilities or off-balance sheet commitments.
• Clarify the business model and revenue sources given the SIC code (waste collection) and evaluate market conditions or customer concentration risks.