Company Number: 14156929

Analysis Date: 2025-07-29 20:52 UTC

1. Risk Rating: MEDIUM

The company shows some solvency risks due to high long-term liabilities relative to net assets, but no immediate liquidity crisis is apparent. Operational sustainability is unclear given the lack of employees and limited financial activity, while regulatory compliance appears satisfactory with up-to-date filings.

2. Key Concerns:

• High Long-Term Debt: Creditors falling due after more than one year total £146,200, a significant liability compared to net assets of just £806 (2024), indicating leverage risk.
• Negative Net Current Assets: Although improved in 2024 (-£4,480 vs. -£6,834 in 2023), the company continues to have net current liabilities, suggesting potential short-term liquidity pressure.
• No Employees and Limited Operational Data: Average employees reported as nil, with directors’ occupations as hairdressers, raising questions about the business model's scale and sustainability.

3. Positive Indicators:

• Improvement in Net Assets: The company moved from negative net assets (-£3,798) in 2023 to a small positive net asset position (£806) in 2024.
• Timely Filing Compliance: Accounts and confirmation statements are filed on time with no overdue reports, indicating good regulatory discipline.
• Stable Fixed Assets: Fixed assets have remained constant at £159,756 over three years, suggesting no asset write-downs or disposals.

4. Due Diligence Notes:

• Clarify Nature and Terms of Long-Term Creditors: Investigate the composition and repayment terms of the £146k+ long-term liabilities to assess refinancing or default risk.
• Assess Business Model Viability: Understand the operational activities given no employees and directors’ unrelated occupations; verify revenue streams and cash flow generation.
• Review Cash Flow Statements: Obtain detailed cash flow data to evaluate liquidity trends beyond balance sheet snapshots.
• Examine Future Plans and Capital Injection: Check for planned capital contributions or strategies to improve working capital and reduce liabilities.
• Verify Director Backgrounds and Related Party Transactions: Confirm no conflicts of interest or unusual related party dealings given the small shareholder base and shared director domicile.