Company Number: 13259156

Analysis Date: 2025-07-20 16:38 UTC

1. Risk Rating: HIGH
   Justification: The company’s latest filed accounts for the year ending 31 March 2024 reveal a net liabilities position of £2,004, a significant deterioration from a positive net asset position of £1,209 in the prior year. The balance sheet shows current liabilities exceeding current assets by £1,713, indicating negative working capital and potential liquidity stress. This negative net asset position raises serious concerns about solvency.

2. Key Concerns:

• Solvency Risk: The company has transitioned from positive net assets (£1,209 in 2023) to net liabilities (-£2,004 in 2024), suggesting an erosion of equity and possible insolvency risk.
• Liquidity Concerns: Current liabilities (£2,478) exceed current assets (£765) by a wide margin, implying difficulty in meeting short-term obligations.
• Operational Stability: The company is a micro-entity with only two employees and minimal fixed assets (£259), operating in a niche SIC code (1700 - Hunting, trapping and related services), which may limit scale and diversification.

3. Positive Indicators:

• The company is compliant with filing deadlines, with both accounts and confirmation statements up to date and not overdue.
• Directors have maintained continuity since incorporation in 2021, with no indication of disqualifications or governance issues.
• The business structure as a private limited company limits shareholder liability to the nominal share capital (£100), protecting personal assets of directors.

4. Due Diligence Notes:

• Investigate reasons for sharp decline in net assets and working capital deterioration between 2023 and 2024, including any unusual or one-off losses or write-downs not apparent from summary data.
• Review cash flow statements and management accounts to assess ongoing liquidity and ability to meet short-term obligations.
• Confirm absence of contingent liabilities or off-balance sheet obligations that might exacerbate financial stress.
• Evaluate the business model’s viability given the niche market, minimal asset base, and small employee count.
• Consider director interviews or background checks for operational insights and potential plans to restore financial health.