Company Number: NI684621

Analysis Date: 2025-07-29 14:25 UTC

1. Risk Rating: MEDIUM
   The company shows a significant improvement in net assets and shareholders' funds from negative to positive within a short period, indicating some operational recovery. However, the recent negative net current assets and relatively small current asset base compared to current liabilities suggest short-term liquidity challenges. The micro-entity status limits detailed financial disclosures, adding some uncertainty.

2. Key Concerns:

• Liquidity risk: As of 31 March 2025, net current liabilities stand at £13,343, indicating potential difficulty meeting short-term obligations.
• Historical solvency issues: Negative shareholders' funds and net current assets in the initial years (2021 and 2022) indicate prior financial distress.
• Limited financial transparency: Being a micro-entity, the company files minimal accounts without audit, restricting comprehensive assessment of profitability and cash flows.

3. Positive Indicators:

• Strong asset base: Fixed assets increased to £440,298 by March 2025, underpinning the company’s net asset position.
• Shareholders’ funds recovered to £426,955, reflecting improved equity and financial stability compared to previous years.
• No overdue filings: Both accounts and confirmation statements are up to date, demonstrating regulatory compliance and governance diligence.

4. Due Diligence Notes:

• Investigate the nature and liquidity of fixed assets to assess their realizability under financial stress.
• Review underlying cash flow statements and profit & loss data (not filed publicly) to understand revenue generation and operational sustainability.
• Confirm related party transactions or intra-group funding that may support liquidity given the holding company status.
• Assess director and management experience in financial turnaround since the director’s occupation is unrelated to finance.
• Monitor future filings for consistency in financial improvement and any emerging liabilities.