Company Number: 13637810

Analysis Date: 2025-07-20 17:56 UTC

1. Risk Rating: HIGH

Justification: The company exhibits persistent negative net assets and net current liabilities over the past three years, indicating an ongoing deficit position and potential solvency challenges. The very low cash balance relative to current liabilities further raises liquidity concerns. Although the company is still active and filings are up to date, the financial position suggests elevated risk of inability to meet short-term obligations without additional funding.

2. Key Concerns:

• Negative Net Assets and Shareholders' Deficit: The company’s net liabilities worsened from approximately £-25k in 2022 to £-153k in 2023, signaling accumulated losses exceeding equity and eroding shareholder value.
• Negative Net Current Assets: A deficit of £161k in 2023 reflects liabilities exceeding current assets, implying potential difficulties in paying short-term debts as they fall due.
• Low Cash Reserves vs High Current Liabilities: Cash on hand reduced sharply to only £4.5k in 2023 against current liabilities of £354.5k, indicating potential cash flow stress.

3. Positive Indicators:

• Timely Filing and Compliance: The company has no overdue accounts or confirmation statements, demonstrating regulatory compliance and good governance in terms of statutory obligations.
• Auditor’s Unqualified Report: The audit opinion is unqualified, which suggests that the financial statements present a true and fair view within the scope of the small companies regime.
• Ongoing Business Activity: Active website, established director presence, and maintained operational address indicate the company continues to trade.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant current liabilities to assess potential refinancing or repayment risks.
• Review cash flow forecasts and working capital management to evaluate short-term liquidity and operational sustainability.
• Examine the causes of accumulated losses and whether there are plans or strategies to return to profitability.
• Assess related party transactions, particularly the loans to key management, for potential conflicts or financial dependencies.
• Verify any contingent liabilities or off-balance sheet exposures not evident in the accounts.