Company Number: 13236494

Analysis Date: 2025-07-29 12:32 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with negative net current assets and shareholders’ funds deteriorating over recent years, indicating a persistent funding gap and inability to meet short-term obligations without external support.

2. Key Concerns:

• Negative Net Current Assets: As of July 2024, net current liabilities stand at £126,591, worsening from £70,856 in 2023, signaling liquidity stress.
• Negative Shareholders’ Funds: The company’s cumulative losses have resulted in shareholders’ funds of -£62,590, indicating an erosion of equity and potential insolvency risk.
• Reliance on Directors’ Support: The directors explicitly state the going concern assumption depends on continued support, suggesting the business may not be self-sustaining financially.

3. Positive Indicators:

• Active Trading Status: The company is active with no overdue filings or overdue accounts, indicating compliance with regulatory requirements.
• Increasing Fixed Assets: Fixed assets increased substantially from £22,726 in 2023 to £64,001 in 2024, which may represent investment in productive capacity.
• Stable Management: The same directors and secretary remain in place since incorporation, implying stable leadership and governance continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of liabilities contributing to current liabilities of £177,481, including whether any are overdue or subject to enforcement action.
• Review cash flow statements (not provided) to assess operational cash generation and funding sources supporting liquidity.
• Assess directors’ plans or arrangements to address negative equity and working capital deficits. Clarify if there are any related party loans or capital injections.
• Understand the business model, customer base, and sector risks within the machinery repair industry (SIC 33120) to evaluate operational sustainability.
• Confirm no director disqualifications or regulatory issues exist beyond the data provided.