Company Number: 13517828

Analysis Date: 2025-07-19 12:46 UTC

1. Risk Rating: HIGH
   The company shows significant solvency issues with net liabilities exceeding £100k and a large creditor balance due after one year. Negative equity and ongoing losses indicate elevated financial distress risk.

2. Key Concerns:

• Negative Net Assets: Shareholders’ funds are deeply negative at £101,590 (2024), worsening from prior years, indicating accumulated losses and erosion of capital.
• High Long-term Creditors: £146,284 owed beyond one year as of 2024, substantially exceeding current assets, suggesting heavy reliance on creditor financing and possible liquidity strain.
• Negative Working Capital History: Although improved in 2024, prior years show negative net current assets, implying past difficulties in meeting short-term obligations.

3. Positive Indicators:

• Growing Current Assets & Cash: Current assets increased to £51,832 and cash balance to £30,780 in 2024, showing some improvement in liquidity management.
• Increasing Employee Base: Staff numbers rose from 24 to 39 in the latest year, implying business growth or scaling of operations.
• No Overdue Filings: Accounts and confirmation statements are up to date, reflecting compliance with regulatory filing requirements.

4. Due Diligence Notes:

• Investigate the nature and terms of the £146k long-term creditor balance to assess repayment risk and creditor relationships.
• Review profitability trends and cash flow statements (not provided) to evaluate operational sustainability and ability to turn around losses.
• Understand the director’s plans to address negative equity and whether additional capital injections or debt restructuring are planned.
• Confirm the company's customer base and revenue visibility given the care services industry classification and recent growth indicators.
• Examine any contingent liabilities or off-balance-sheet commitments that may impact future solvency.