Company Number: 13442553

Analysis Date: 2025-07-20 16:17 UTC

1. Risk Rating: HIGH
   The company exhibits substantial and growing net current liabilities and negative shareholders’ funds over multiple years, indicating persistent insolvency risk. Cash balances are negligible, and director loans constitute a significant portion of liabilities, suggesting liquidity constraints.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£21,747) significantly exceed current assets (£4,615) as of June 2024, resulting in a net current liability of £17,132. This shortfall worsened from the prior year, evidencing ongoing liquidity pressure.
• Negative Shareholders’ Funds: Shareholders’ funds are negative (£17,132), reflecting accumulated losses and erosion of capital, which undermines solvency and financial stability.
• Dependence on Director Loans: £8,595 of current liabilities are director loans, indicating reliance on related party funding, which may not be sustainable or enforceable in the long term.

3. Positive Indicators:

• Compliance and Filing: All statutory filings, including accounts and confirmation statements, are up to date with no overdue returns or accounts. This suggests adherence to regulatory requirements and good governance at the compliance level.
• Growth in Debtors and Activity: Debtors increased from £1,266 in 2023 to £4,615 in 2024, and the company expanded from 2 to 3 employees, indicating some business activity growth.
• Experienced Management: Directors include practicing doctors and company directors, potentially offering relevant industry expertise and operational insight.

4. Due Diligence Notes:

• Review the nature and collectability of debtors (£4,615) to assess realisable current assets.
• Investigate the terms, security, and repayment prospects of director loans (£8,595) and other creditors.
• Assess cash flow forecasts and working capital management to understand how liquidity shortfalls will be addressed.
• Evaluate the company’s business model and revenue generation capability given ongoing losses and negative equity.
• Confirm no director disqualifications or governance issues beyond those apparent in filings.