Company Number: 14192578

Analysis Date: 2025-07-19 12:55 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits negative net assets and net current liabilities as of the most recent financial year, indicating potential solvency and liquidity issues. The equity position has deteriorated significantly compared to the prior year, raising concerns about financial stability.

2. Key Concerns:

• Negative net assets of £11,923 at 30 June 2024, a substantial decline from positive £1,590 the previous year, indicating erosion of shareholders' funds.
• Net current liabilities of £4,519 as of 2024 year-end, compared to positive net current assets previously, suggesting short-term liquidity pressure.
• Significant long-term liabilities (£24,033) remain sizable relative to total assets, with no clear indication of repayment capacity or refinancing plans.

3. Positive Indicators:

• The company is active, compliant with filing deadlines, and not in liquidation or administration.
• Current assets increased notably to £65,295 (2024) from £18,079 (2023), showing some asset growth potentially from receivables or cash equivalents.
• Employment stable at three persons including directors, indicating operational continuity at a small scale.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£24,033) and the recent increase in current liabilities (£78,062) to assess repayment risk.
• Clarify the composition of current assets (particularly receivables and cash balances) to determine realizability and cash flow sufficiency.
• Review recent trading performance and cash flow statements (not provided) for insight into operational profitability and working capital management.
• Validate director and shareholder control structure stability given recent director changes and confirm no disqualifications or regulatory issues.
• Assess any contingent liabilities or off-balance sheet obligations that may exacerbate financial risk.