Company Number: 14121913

Analysis Date: 2025-07-29 18:27 UTC

1. Risk Rating: HIGH
   The company shows significant net liabilities and negative shareholder funds, indicating solvency risk. The net current liabilities have doubled within one year, and cash balances are minimal relative to short-term debts.

2. Key Concerns:

• Solvency and Negative Net Assets: The balance sheet reports net liabilities of £17,373 as of May 2024, worsening from £8,330 the previous year, signaling ongoing financial distress.
• Liquidity Constraints: Cash at bank is only £910 against current liabilities of £18,283, indicating a poor liquidity position and potential cash flow difficulties.
• Reliance on Director Support: The director’s current account creditor balance increased from £5,669 to £12,877, suggesting the company depends heavily on director loans or funds to continue operations, which may not be sustainable.

3. Positive Indicators:

• Compliance with Filings: The company’s accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.
• Stable Employee Base: The company maintains a small but stable workforce of 3 employees, consistent over the reported periods.
• Going Concern Statement: The director has confirmed going concern based on continued support and expected profitable trading, which is a positive governance indicator, although this depends on future performance.

4. Due Diligence Notes:

• Investigate Director’s Financial Support: Clarify the nature and terms of the director’s current account balance and whether this funding is sustainable or convertible into equity.
• Examine Revenue and Profit Trends: The absence of turnover or profit data in the provided accounts limits insight into operational performance; detailed P&L information should be reviewed.
• Review Cash Flow Forecasts: Assess projected cash flows and working capital management to determine if the company can meet short-term obligations without further loans.
• Confirm No Auditor Review: The accounts are unaudited filleted accounts; consider requesting more detailed financial statements or an audit for greater assurance.
• Assess Business Model Viability: Given the company operates a specialist medical practice, evaluate client base, contracts, and competition to verify sustainable income sources.