Company Number: 12764199

Analysis Date: 2025-07-20 15:29 UTC

1. Risk Rating: HIGH
   The company exhibits significant financial deterioration and operational challenges. The drastic fall in turnover from £30,500 in 2023 to £2,734 in 2024, coupled with a substantial operating loss (£6,909) and near depletion of cash reserves (£3), indicates a high solvency and liquidity risk. The collapse in fixed assets from £42,140 to £25 suggests asset disposals or write-downs that may impair operational stability.

2. Key Concerns:

• Severe Decline in Revenue and Profitability: Turnover declined by over 90% year-on-year, resulting in a loss and eroding equity from £51,041 to £1,220.
• Liquidity Risk: Cash on hand is critically low (£3) with no current liabilities, indicating potential cash flow constraints to fund ongoing operations.
• Asset Depletion: Disposal of almost all fixed assets (£42,115 reduction) within the year raises questions about the sustainability of business operations and possible distress.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, demonstrating compliance with regulatory requirements.
• No Current Liabilities: Absence of creditors due within one year reduces immediate financial pressure from trade or tax debts.
• Sole Control by Director/PSC: Clear ownership and control by Mr. Charles David Cook may facilitate swift decision making.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp revenue decline and asset disposals—whether due to operational shutdown, strategic pivot, or financial distress.
• Review cash flow statements and bank statements to assess liquidity management and funding sources.
• Confirm the absence of contingent liabilities or off-balance sheet obligations not disclosed in the accounts.
• Assess director’s plans and capital injection intentions to restore financial health or wind down the business.
• Verify the accuracy of debtor balances and potential recoverability given the reduction from £6,902 to £182.