Company Number: 13436307

Analysis Date: 2025-07-20 16:47 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by large and increasing net current liabilities and negative net assets. These factors strongly indicate financial distress and potential inability to meet short-term obligations.

2. Key Concerns:

• Severe Negative Net Assets and Working Capital Deficit: The net assets have deteriorated from -£9,522 in 2021 to -£45,190 in 2024, with net current liabilities worsening from -£11,547 to -£47,215, signaling deepening financial instability.
• High Director Loan Account Balance: £13,286 owed to directors as of 2024, a substantial increase from £587 in 2023, may suggest reliance on director funding to sustain operations rather than generating positive cash flows.
• Declining Trade Debtors and Rising Creditors: Trade debtors have dropped considerably (from £6,766 in 2023 to £2,691 in 2024), while trade creditors and other liabilities have increased, worsening liquidity pressures and potential supplier payment risks.

3. Positive Indicators:

• Active Trading Status with No Filing Overdues: The company is active with timely filing of accounts and confirmation statements, which suggests compliance with statutory obligations.
• Small Asset Base with Tangible Assets Consistent: Fixed assets remain stable at £2,025, indicating no recent impairments or disposals that might further destabilize the asset base.
• Website Presence and Service Offering: An active website and service description imply ongoing operational activity in a defined niche (vehicle maintenance and repair).

4. Due Diligence Notes:

• Investigate Cash Flow Management: Review management accounts and bank statements to assess current cash flow and ability to service creditor obligations.
• Examine Director Loans Terms and Repayment Plans: Clarify nature, terms, and sustainability of director loans and whether these represent temporary support or longer-term liabilities.
• Understand Revenue Trends and Profitability: The absence of profit and loss data limits assessment; request detailed turnover, margin, and expense information to evaluate operational viability.
• Review Any Potential Contingent Liabilities: Check for guarantees or contingent liabilities that may exacerbate financial risk.
• Assess Management Changes and Control Shifts: Recent director appointments and resignations may impact strategic direction and risk profile; understand implications.

5. Regulatory Compliance:
   The company is up to date with filings and shows no overdue accounts or confirmation statements. There is no indication of governance or compliance issues from the data provided.