Company Number: 14253032

Analysis Date: 2025-07-20 14:10 UTC

1. Risk Rating: HIGH
   The company shows a weak liquidity position with no current assets or cash to cover nearly £830k current liabilities as of the latest accounts. Although fixed assets increased substantially, the near absence of liquid assets and negative net current assets highlight significant solvency and cash flow risk.

2. Key Concerns:

• Liquidity Deficit: Zero cash and current assets against high short-term liabilities imply potential inability to meet immediate obligations.
• Negative Working Capital: Consistent negative net current assets over three years indicate operational cash flow challenges.
• High Short-Term Debt: Large increase in current liabilities (from £183k to £830k) within one year without corresponding liquid asset growth raises risk of default or refinancing difficulties.

3. Positive Indicators:

• Increase in Fixed Assets: Tangible fixed assets grew from £180k to £830k, suggesting asset accumulation that may support future revenue or refinancing.
• No Overdue Filings: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance.
• Active Status: The company remains active without liquidation or administration proceedings.

4. Due Diligence Notes:

• Investigate the nature and terms of the £250k bank loan and other creditors totalling £579k, including repayment schedules and covenants.
• Review cash flow forecasts and business plans to assess how liquidity issues will be addressed.
• Confirm valuation and marketability of fixed assets, as these underpin solvency despite poor current asset position.
• Examine reasons for negative retained earnings historically and plans to turn profitability positive.
• Verify whether related party transactions exist within other creditors that might affect financial stability.