Company Number: 12457378

Analysis Date: 2025-07-29 16:56 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risks, as reflected by negative net current assets and net liabilities reported for the latest financial year. The balance sheet shows current liabilities exceeding current assets by a substantial margin, indicating potential difficulties in meeting short-term obligations.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£22,726) substantially exceed current assets (£505) in 2024, resulting in a net current liability of -£22,221, which suggests liquidity strain.
• Net Liabilities Position: Total net assets are negative (£-6,363) for 2024, indicating the company’s total liabilities exceed its assets, a red flag for solvency and financial stability.
• Consistent Decline in Financial Health: From 2021 to 2024, there is a clear deterioration from positive net assets (£1,131 in 2021) to increasingly negative net assets, pointing to ongoing operational or financial challenges.

3. Positive Indicators:

• Stable Employee Base: The company maintains a small but stable workforce of 3 employees, which may reflect controlled operational scale and manageable overheads.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with Companies House filing requirements and good governance in this respect.
• Ownership and Control: The sole director and majority shareholder (Mr. Yeaqub Ali) suggests clear decision-making authority, potentially allowing agile management responses.

4. Due Diligence Notes:

• Cash Flow Analysis: Investigate detailed cash flow statements to understand the cause of liquidity issues and whether operational cash inflows can improve.
• Debt Profile: Clarify the nature and terms of current liabilities to assess immediate repayment obligations versus long-term debt restructuring possibilities.
• Business Model Viability: Review the operational model and revenue streams, especially given the maintenance and repair industry pressures, to evaluate sustainability.
• Director’s Plans: Obtain management commentary on turnaround strategies or capital injections planned to address negative equity and working capital deficits.