Company Number: 13666127

Analysis Date: 2025-07-29 16:15 UTC

1. Risk Rating: HIGH
   The company’s financial position as at 31 October 2024 shows significant deterioration with net current liabilities of £37,914 and total net liabilities of £15,908. This indicates an inability to cover short-term debts from current assets, reflecting severe liquidity and solvency issues.

2. Key Concerns:

• Liquidity Deficit: The current liabilities (£58,527) substantially exceed current assets (£20,613), resulting in negative working capital which poses risk to meeting short-term obligations.
• Decline in Net Assets: Net assets fell from £20,805 in 2023 to a negative £15,908 in 2024, showing erosion of shareholder equity and raising solvency concerns.
• Limited Operational Scale: The company is classified as micro-entity with only 1 employee on average and limited fixed assets, which may constrain operational resilience and ability to generate cash flow.

3. Positive Indicators:

• Compliance: Company filings, including accounts and confirmation statements, are up to date with no overdue submissions, reflecting regulatory diligence.
• Experienced Directors: The board comprises three directors with professional backgrounds relevant to social and care services, consistent with the company’s SIC codes.
• Continued Activity: The company remains active and is not in liquidation or any formal insolvency process.

4. Due Diligence Notes:

• Investigate reasons for sharp decline in assets and increase in liabilities between 2023 and 2024; review detailed profit and loss accounts if available.
• Assess the company’s cash flow statements and forecasts to determine whether liquidity issues are temporary or structural.
• Review contract or revenue sources and their stability, given the narrow employee base and sector risks in residential care activities.
• Confirm absence of any contingent liabilities or off-balance sheet obligations that may exacerbate financial risk.