Company Number: 12854387

Analysis Date: 2025-07-29 20:35 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, with deeply negative net assets and worsening current liabilities compared to current assets. The financial position suggests potential difficulties in meeting short-term obligations.

2. Key Concerns:

• Severe Net Liability Position: Net assets have deteriorated from -£174k in 2023 to -£565k in 2024, indicating increasing accumulated losses and erosion of shareholder equity.
• Negative Working Capital: Current liabilities (£647,812) far exceed current assets (£75,340) in 2024, creating a negative net working capital of -£563,297, which signals liquidity stress.
• Rapid Liability Growth: Current liabilities nearly doubled year-on-year (from £332,958 in 2023 to £647,812 in 2024), without a corresponding increase in current assets, raising concerns about cash flow management and creditor pressure.

3. Positive Indicators:

• Active Status and Timely Filings: The company is active and has filed accounts and confirmation statements on time, indicating compliance with statutory requirements.
• Increasing Workforce: The average number of employees doubled from 3 to 6, which may indicate business expansion or increased operational activity.
• Stable Leadership: A single director with full control has been consistent since incorporation, potentially allowing for decisive management.

4. Due Diligence Notes:

• Investigate the nature and cause of the large increase in current liabilities over the last year, including creditor aging and payment terms.
• Review cash flow statements or bank statements (not provided) to assess actual liquidity and ability to service short-term debts.
• Understand the company's business model and revenue streams, especially given the SIC code related to regulation of health care and social services, to evaluate operational sustainability.
• Enquire about any related party transactions or contingent liabilities that may exacerbate financial risk.
• Confirm whether there is any ongoing support (e.g., loans or guarantees) from the sole shareholder/director.