Company Number: 13560018

Analysis Date: 2025-07-20 11:01 UTC

1. Risk Rating: HIGH
   The company exhibits significant negative net asset values (negative equity) and very high current liabilities exceeding current assets, indicating solvency and liquidity stress.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows total net liabilities of £152,359 in 2024, worsening from £107,722 in 2023, signalling insolvency risk.
• Current Liabilities Exceed Current Assets: Current liabilities (£496,271) far exceed current assets (£88,181), resulting in negative net current assets of -£408,090, which is a major liquidity concern.
• Limited Financial Disclosure and Micro-Entity Status: As a micro-entity, the company files minimal financial information, restricting visibility into cash flows, profitability, and contingent liabilities, increasing due diligence complexity.

3. Positive Indicators:

• Timely Filing Compliance: The company is current with both accounts and confirmation statement filings, indicating regulatory compliance and governance discipline.
• Stable or Growing Employee Count: The increase from 2 to 3 employees may suggest operational activity and potential business growth.
• No Long-Term Debt: Absence of creditors due after more than one year reduces long-term debt burden.

4. Due Diligence Notes:

• Examine Profit & Loss and Cash Flow Statements: To assess operational performance and cash generation, which are not available in micro-entity filings.
• Investigate Reasons for Negative Equity: Explore whether losses are due to operating deficits, extraordinary charges, or asset write-downs.
• Assess Director Backgrounds and Related Party Transactions: Given the controlling interests held by related individuals and the director occupations, verifying governance and potential conflicts is important.
• Review Creditors Composition and Payment Terms: To determine if current liabilities are trade payables, loans, or other forms of short-term debt impacting liquidity.
• Confirm Continuity of Operations: Given the financial strain, assess business model viability and plans for financial restructuring or capital injection.