Company Number: 14263463

Analysis Date: 2025-07-20 13:00 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity risk as current liabilities vastly exceed current assets, resulting in a net current liability position of approximately £138,775 as of July 2024. This raises serious concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Severe negative working capital: Current assets of £6,235 versus current liabilities of £145,011 indicate potential cash flow and solvency challenges.
• Lack of revenue growth: Turnover was only £11,190 in the prior year (2023) with no data indicating improvement, suggesting limited operational activity and income generation.
• No employees: The company reports having zero employees, which may imply minimal operational capacity or reliance on external contractors, raising sustainability questions.

3. Positive Indicators:

• Increase in net assets: Despite liquidity issues, net assets increased from £9,064 (2023) to £22,725 (2024), largely due to fixed asset additions (£161,500 in 2024 vs £0 prior year), suggesting some investment in long-term assets.
• No overdue filings: The company is up to date with both accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Single director and PSC: Clear governance with one director who is also the sole person with significant control, which may simplify decision-making.

4. Due Diligence Notes:

• Investigate the nature and liquidity of the fixed assets (£161,500) to determine if they can be leveraged or sold to alleviate cash flow issues.
• Review cash flow statements and creditor schedules to understand the composition and maturity profile of the £145,011 current liabilities.
• Assess whether the company has access to external financing or director loans to cover negative working capital.
• Confirm ongoing business operations and revenue generation plans given the very low turnover and no employees reported.
• Evaluate the director’s background and business plan to understand management capability and strategy to restore financial health.