Company Number: 13826984

Analysis Date: 2025-07-20 12:42 UTC

1. Risk Rating: HIGH
   The company exhibits a pattern of persistent net current liabilities and declining net assets over four reported years, indicating solvency and liquidity concerns. The negative working capital position and director loans further elevate risk, especially given the micro-entity scale and reliance on a single director.

2. Key Concerns:

• Liquidity and Working Capital Deficit: The company has consistent negative net current assets (e.g., -£3,519 in 2025), suggesting inability to cover short-term obligations without additional financing.
• Declining Net Assets: Net assets have decreased from £22,660 in 2024 to £16,654 in 2025, reducing the equity buffer against losses.
• Director Loans: Significant amounts (£18,467 in 2025) are owed to the director, possibly indicating reliance on related-party funding to sustain operations.

3. Positive Indicators:

• Regular Filing Compliance: All statutory accounts and confirmation statements are filed on time with no overdue returns, indicating good governance in compliance terms.
• Active Trading and Website Presence: An active website and social media presence support ongoing business operations and customer engagement in a specialized engineering niche (SIC 71129).
• Stable Single Director with Industry Experience: The director has been in place since incorporation, with relevant occupation (mechanic), suggesting operational continuity and expertise.

4. Due Diligence Notes:

• Review detailed profit and loss data to assess revenue trends, margins, and cash flow generation, currently unavailable from micro-entity filings.
• Investigate the nature and terms of director loans and other related-party transactions for sustainability and repayment risk.
• Assess client concentration and contract stability given the niche luxury automotive engineering market.
• Verify any contingent liabilities or off-balance sheet exposures not reflected in micro-entity accounts.
• Confirm future capital injection plans or credit facilities to cover working capital shortfalls.