Company Number: 13818825

Analysis Date: 2025-07-29 16:30 UTC

1. Risk Rating: HIGH
   The company shows significant liquidity concerns with net current liabilities and a substantial drop in net assets over the last reported year, indicating elevated solvency risk.

2. Key Concerns:

• Negative net current assets (£-8,098) at 2023 year-end, down from a positive £105,413 the previous year, signaling potential cash flow or short-term funding issues.
• Sharp decline in net assets from £21,870 in 2022 to £8,778 in 2023, reflecting erosion of shareholder equity and potential operational or financial losses.
• Large current liabilities (£83,243) relative to current assets (£15,212) in 2023, creating pressure on meeting short-term obligations.

3. Positive Indicators:

• Company is active and compliant with filing deadlines, indicating no immediate regulatory or governance lapses.
• Sole director and 100% controlling shareholder shows clear control and accountability within management.
• Incorporation is recent (2021), so financial volatility may reflect startup phase rather than entrenched problems.

4. Due Diligence Notes:

• Investigate the nature and terms of the substantial current liabilities (£83k) and why current assets have dropped sharply from prior years.
• Review underlying profit and loss details (not filed publicly) to understand causes of net asset decline and operating results.
• Assess cash flow forecasts and liquidity management plans given working capital deficit.
• Verify if any contingent liabilities or off-balance sheet obligations exist.
• Confirm whether fixed assets (£100k) are liquid or tied up in illiquid investments, impacting operational flexibility.
• Examine the director’s plans or capital injections to restore financial stability.