Company Number: 13971557

Analysis Date: 2025-07-29 19:36 UTC

1. Risk Rating: HIGH
   The company exhibits a persistent negative net asset position and net current liabilities, indicating solvency concerns. Despite being a recently incorporated entity, the financials show no improvement in working capital, with liabilities consistently exceeding current assets. The sizeable operating lease commitments further strain liquidity.

2. Key Concerns:

• Negative Shareholders’ Funds: The company’s equity is significantly negative (£-20,153), reflecting accumulated losses and undermining capital stability.
• Poor Working Capital Position: Current liabilities (£99,010) exceed current assets (£71,717) by over £27,000, indicating potential difficulty meeting short-term obligations.
• Substantial Long-term Lease Obligations: Non-cancellable lease commitments exceeding £254,000 represent a heavy fixed cost burden with no offsetting asset backing, heightening liquidity risk.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, reducing regulatory risk.
• Directors’ Support: The directors confirm the going concern assumption based on their support, which may imply willingness to inject funds or manage operations prudently.
• Steady Trade Debtors Growth: Trade debtors increased from £4,736 to £9,547, suggesting some revenue growth or improved receivables management.

4. Due Diligence Notes:

• Investigate the nature and duration of the lease agreements to assess potential renegotiation or termination options given the heavy commitments.
• Review directors’ plans or evidence of financial support to cover ongoing losses and working capital deficits.
• Examine cash flow forecasts and turnover trends to evaluate operational viability and the timeline for returning to positive net assets.
• Confirm the completeness and accuracy of debtor balances and assess collectability given the company’s liquidity challenges.
• Assess any contingent liabilities or off-balance sheet risks not disclosed in the accounts.