Company Number: 13263174

Analysis Date: 2025-07-20 17:38 UTC

1. Risk Rating: HIGH

Justification: The company’s most recent financials (year ending 31 March 2024) show a drastic deterioration in net assets and working capital compared to prior years. Net current assets have swung from a positive £7,943 in 2023 to a negative £132 in 2024, and net assets fell from £6,831 to just £654. This indicates acute liquidity and solvency pressures within the last year, raising significant concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Severe decline in liquidity: Current liabilities remain relatively stable (£465k in 2024 vs £8,015k in 2023, but note possible data inconsistency needs review), while current assets increased only slightly, resulting in negative net current assets in the latest year. This may suggest cash flow difficulties.
• Sharp erosion of net assets: The drop from £6,831 to £654 in net assets within one year is a red flag for financial stability and could indicate operational losses or write-downs.
• Minimal share capital and employee base: Share capital of only £1 and a single employee suggest limited capitalization and human resources, which may constrain operational scalability and resilience.

3. Positive Indicators:

• No overdue filings: Accounts and confirmation statements are filed on time, indicating compliance with statutory reporting requirements.
• Active status and no liquidation: The company remains active with no formal insolvency processes underway.
• Director with consistent appointment since incorporation: The presence of a single director continuously involved since formation could imply stable leadership.

4. Due Diligence Notes:

• Verify the significant apparent discrepancy in current liabilities figures between 2023 and 2024; the 2023 figure of £8,015 seems inconsistent with the micro-entity categorization and subsequent years.
• Investigate the cause of the sharp decline in net assets and working capital—whether due to operational losses, write-offs, or reclassification of liabilities.
• Review cash flow statements or management accounts (if available) to assess short-term liquidity pressures and operational cash generation.
• Confirm the accuracy and completeness of financial data filed, considering the unusual fluctuations.
• Assess the business model viability given the small scale of operations, limited employees, and nominal share capital.