Company Number: 12607168

Analysis Date: 2025-07-20 14:59 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as current liabilities substantially exceed current assets, resulting in negative net current assets for the latest two reported years. Despite being active and compliant with filing deadlines, the financial data signals potential financial distress.

2. Key Concerns:

• Negative Working Capital: For the years ending 31 May 2023 and 31 May 2024, the company reports net current liabilities (£-26,583 in 2023 and £-30,586 in 2024), indicating an inability to cover short-term obligations with short-term assets.
• Declining Net Assets: Net assets decreased markedly from £65,964 in 2023 to £35,112 in 2024, suggesting erosion of equity and potential capital depletion.
• Cash Position and Liquidity: The current assets dropped sharply from £174,511 in 2023 to £67,006 in 2024, with no explicit cash figure provided for 2024 to confirm liquidity, raising concerns about cash flow sufficiency.

3. Positive Indicators:

• Timely Filings: The company is up to date with accounts and confirmation statement filings, demonstrating regulatory compliance and good governance in reporting.
• Ownership and Control: The sole director and 75-100% shareholder is consistent, which may facilitate swift decision-making and operational control.
• Micro-entity Status: The small scale of operations with approximately 2 employees suggests a lean business model potentially with lower fixed overheads.

4. Due Diligence Notes:

• Cash Flow Analysis: Investigate cash flow statements or bank statements to assess actual liquidity and ability to meet short-term liabilities.
• Debt Structure: Clarify the nature and terms of current liabilities—whether they are trade payables, short-term loans, or other obligations—and assess refinancing risks.
• Profitability and Revenue Trends: Review profit and loss accounts or management accounts to understand operational performance and causes for asset and equity decline.
• Contingent Liabilities and Off-Balance Sheet Items: Check for any undisclosed liabilities or commitments that may impact solvency.
• Director’s Plans and Going Concern: Obtain directors’ statements regarding the company’s ability to continue as a going concern and any plans to improve the financial position.