Company Number: 12499200

Analysis Date: 2025-07-29 12:58 UTC

1. Risk Rating: HIGH
   The company’s latest financials reveal a significant deterioration in financial position with net current liabilities of £3,974 and negative net assets of the same amount as of 31 March 2025. This represents a sharp decline from positive net assets of £9,679 the previous year, indicating solvency risk.

2. Key Concerns:

• Solvency and Negative Equity: The company moved from positive equity to a net liabilities position within one year, implying erosion of shareholder funds and raising doubts about its ability to meet long-term obligations.
• Liquidity Strain: Current liabilities (£7,042) exceed current assets (£3,068) by a significant margin, and cash reserves are minimal (£57), which suggests potential difficulties in meeting short-term debts.
• Disposal of Fixed Assets: The company disposed of all tangible fixed assets (£22,637 net book value in prior year), which may signal asset liquidation to cover liabilities or cease operations of key business functions, impacting operational stability.

3. Positive Indicators:

• Timely Filing Compliance: The company has filed accounts and confirmation statements on time, indicating compliance with regulatory requirements and good governance in this respect.
• Established Directors and Control: The company has consistent leadership with directors appointed since incorporation and clear significant control structure, which may provide stability in management decisions.
• No Audit Exemption Compliance: The company is compliant with small companies regime accounting standards and has properly disclosed exemption from audit, consistent with its size and filing category.

4. Due Diligence Notes:

• Investigate reasons for the large drop in net assets and current assets, including the nature of disposals and any underlying operational issues or one-off events.
• Review detailed cash flow statements and creditor aging reports to assess liquidity management and whether working capital pressures are temporary or systemic.
• Examine the company’s business model and client base in the advertising sector to determine sustainability and revenue prospects amid the financial downturn.
• Confirm no outstanding contingent liabilities or related-party transactions that could exacerbate financial risks.
• Investigate the impact of hire purchase contract repayments which previously accounted for significant long-term liabilities but appear removed in the latest year.