Company Number: 13910501

Analysis Date: 2025-07-29 20:31 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and persistent net current liabilities significantly exceeding current assets, indicating solvency and liquidity risks.

2. Key Concerns:

• Solvency issues: The company’s net assets are negative (£-15,250 in 2024), and total assets less current liabilities are negative (£-14,020), which suggests the company’s liabilities exceed its assets.
• Liquidity concerns: Current liabilities (£258,932) vastly outweigh current assets (£2,770), resulting in a large negative working capital (net current liabilities of £-256,162). This indicates potential difficulties in meeting short-term obligations.
• Operational sustainability: The company has not shown improvement over the three reported years in key financial metrics (net assets and net current liabilities remain negative and largely unchanged), which raises concerns about its ability to sustain operations without additional capital or restructuring.

3. Positive Indicators:

• The company is compliant with filing deadlines for both accounts and confirmation statements, indicating good regulatory compliance and governance in this respect.
• The directors are disclosed and stable with no adverse records reported; both directors have engineering backgrounds and appear engaged given the company address overlaps with their residential/business location.
• The company operates within a clearly defined niche SIC code (68209 – other letting and operating of own or leased real estate), which can imply a focused business activity.

4. Due Diligence Notes:

• Investigate the nature of the fixed assets (£242,142) to understand if these are realizable or generating income, as they represent the majority of reported assets.
• Review cash flow statements and bank balances (not provided) to assess liquidity beyond the static balance sheet figures.
• Clarify the source of current liabilities and whether these are trade creditors, loans, or related-party balances to evaluate risk exposure and repayment schedules.
• Understand the company’s business model and revenue generation given the limited current assets and negative equity position.
• Confirm whether the directors or shareholders have plans to inject further capital or restructure liabilities given ongoing deficits.
• Examine any contingent liabilities or off-balance sheet commitments that could affect financial stability.