Company Number: 13439328

Analysis Date: 2025-07-29 16:09 UTC

1. Risk Rating: MEDIUM
   Justification: The company has shown a significant turnaround in net assets from negative £56k at the end of 2022 to positive £123k at the end of 2023, driven by improved current assets and reduction in liabilities. However, the company remains small with modest share capital (£1,000) and depends on related party loans, which could pose risks if funding is withdrawn. The absence of an audit and limited disclosure also moderate confidence.

2. Key Concerns:

• Reliance on Related Party Loans: The company owes £43k to Vasiniko Ltd, a related party, which although reduced from prior year (£160k), indicates significant dependence on external funding from shareholders or affiliates.
• Previous Negative Equity Position: The company had negative net assets in prior periods, which may indicate past solvency issues requiring further investigation into how this was resolved.
• Limited Financial Transparency: Accounts are unaudited and the company has opted not to file a Profit and Loss account with Companies House, reducing visibility on operational profitability and cash flow quality.

3. Positive Indicators:

• Improved Liquidity Position: Current assets increased to £232k with cash at £179k, exceeding current liabilities of £191k, resulting in positive net current assets of £41.5k. This suggests improved ability to meet short-term obligations.
• Positive Net Assets: The company now reports net assets of £122.9k, reflecting a stronger balance sheet compared to prior periods.
• Growing Workforce: Employee count increased from 3 to 13, implying business growth and operational scaling.

4. Due Diligence Notes:

• Review the company's cash flow statements and operational profit/loss to confirm sustainability of liquidity improvements and understand revenue generation, especially since P&L is not filed.
• Examine terms and conditions of related party loans, including repayment schedules and any potential impact on going concern status.
• Investigate the cause and resolution of prior negative equity and whether this involved capital injections or asset revaluations.
• Confirm compliance with filing requirements and verify no overdue returns or accounts beyond those noted.
• Assess risks related to director and controlling party concentration, noting that Mr. Mario Viglietti holds significant control and is also the sole director.