Company Number: 13621843

Analysis Date: 2025-07-19 12:21 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits a significant deterioration in net assets, turning from a positive position of £3,514 in 2023 to a negative £2,850 in 2024. This indicates solvency concerns and suggests that liabilities exceed assets, which poses a high risk of financial distress.

2. Key Concerns:

• Solvency Risk: Negative net assets in the latest financial year indicate the company may be unable to meet its long-term obligations.
• Liquidity Concerns: Current assets have decreased sharply from £23,037 in 2023 to £4,334 in 2024, while current liabilities remain almost the same, resulting in near-zero net current assets (£31). This signals potential cash flow difficulties.
• Operational Stability: The sudden decline in asset base and increase in liabilities falling due after more than one year (from £16,045 to £2,881) within one year is inconsistent and may reflect restructuring or financial strain. The company remains very small with only 3 employees, which may limit operational capacity.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, indicating governance and regulatory adherence.
• The business is classified under a specific SIC code (Printing not elsewhere classified), suggesting a niche operational focus.
• Slight increase in employee count from 2 to 3 shows some operational continuity.

4. Due Diligence Notes:

• Investigate the nature and cause of the dramatic reduction in current assets and shift in liabilities between 2023 and 2024.
• Confirm the accuracy of reported liabilities falling due after more than one year, as the 2024 accounts show a significant drop from the previous year.
• Review cash flow statements and director’s reports (if available) to assess ongoing liquidity management and plans to restore solvency.
• Evaluate the company’s business model viability given the small scale and recent financial deterioration.
• Check for any off-balance sheet liabilities or related party transactions that might affect financial health.