Company Number: 13106166

Analysis Date: 2025-07-19 11:53 UTC

1. Risk Rating: MEDIUM

The company shows modest net asset growth but has significant current liabilities, primarily consisting of directors’ current accounts, which indicates reliance on related party funding rather than external creditors. While the company is not in liquidation and filings are up to date, the large current liabilities relative to cash holdings pose moderate solvency and liquidity risks.

2. Key Concerns:

• High Current Liabilities: Current liabilities amount to approximately £1.46 million (2023), mainly due to directors’ current accounts (£1.39 million), which may suggest funding dependency and potential liquidity constraints.
• Negative Net Current Assets: The company recorded negative net current assets of £1.43 million, indicating that current liabilities exceed current assets, which could affect short-term financial stability.
• Decreasing Fixed Assets Value: Tangible fixed assets decreased by £180,000 in 2023, with no additions, which may reflect asset disposals without reinvestment, potentially impacting operational capacity or future income streams.

3. Positive Indicators:

• Increasing Net Assets: Shareholders’ funds improved from £130,448 in 2022 to £240,052 in 2023, showing some accumulation of retained earnings or capital strengthening.
• Up-to-date Filings and Compliance: The company’s accounts and confirmation statements are filed on time with no overdue status, indicating good regulatory compliance.
• No Employees and Low Operating Costs: With zero employees and minimal reported expenses, the company’s cost structure appears lean, which may help preserve cash flow.

4. Due Diligence Notes:

• Investigate Directors’ Current Accounts: Understand the nature and terms of the £1.39 million owed to directors, including repayment plans and whether this constitutes a long-term financing arrangement.
• Cash Flow Analysis: Review detailed cash flow statements to assess liquidity trends and the company’s ability to meet short-term obligations given the negative net current asset position.
• Asset Valuation and Strategy: Examine reasons for fixed asset disposals and absence of reinvestment to determine impact on the company’s operational sustainability and future earnings capacity.