Company Number: 14427553

Analysis Date: 2025-07-29 16:38 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in working capital and net assets within a short time frame, which raises concerns about its ability to meet short-term obligations. The net current liabilities position as at 31 October 2024 suggests liquidity stress.

2. Key Concerns:

• Negative net current assets (£-985) as of the latest accounts indicate liquidity issues that could impair the company’s ability to cover short-term liabilities.
• Substantial increase in debtors classified as "other taxes and social security" (£6,449) raises questions about recoverability and cash flow timing.
• Sharp decline in cash balance from £18,498 to £514 within one year, combined with increasing director’s loan account (£6,035), may indicate reliance on director funding and cash flow challenges.

3. Positive Indicators:

• The company remains active and compliant with filing obligations, with no overdue accounts or confirmation statements reported.
• Ownership and control are consolidated under a single director and majority shareholder, which may facilitate streamlined decision-making and operational control.
• The company operates in the advertising agency sector (SIC 73110), which typically has relatively low fixed asset requirements, consistent with the low fixed asset base reported.

4. Due Diligence Notes:

• Review the nature and collectability of debtor balances, particularly the significant amount categorized under taxes and social security, to determine if these are recoverable or represent receivables from HMRC or other authorities.
• Investigate the reason for the drastic reduction in cash reserves and the increasing director’s loan account to assess the sustainability of current financing arrangements.
• Examine the company’s trading performance, contract pipeline, and cash flow forecasts to evaluate operational viability and prospects for returning to positive working capital.
• Confirm no director disqualifications or adverse governance issues are present beyond the data provided.