Company Number: 13976749

Analysis Date: 2025-07-20 15:29 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, as evidenced by negative net current assets and net liabilities. The low turnover and minimal cash reserves exacerbate these risks for an early-stage business.

2. Key Concerns:

• Negative working capital: At the 2024 year-end, current liabilities (£1,854) substantially exceed current assets (£48), resulting in a net current liability position of £1,806. This indicates an inability to meet short-term obligations from liquid assets.
• Negative shareholders’ funds: The company has reported negative net assets of £1,806, worsening from the prior year, signaling accumulated losses and eroded equity.
• Low revenue and cash resources: Turnover declined from £50,598 in 2023 to £31,712 in 2024, coupled with minimal cash balances (£48), raising concerns about operational cash flow sufficiency.

3. Positive Indicators:

• Profitability at the operating level: Despite low turnover, the company reported a modest operating profit (£1,610) and net profit after tax (£1,304) for the year ended March 2024, indicating some ability to generate positive earnings.
• No overdue statutory filings: Compliance with filing deadlines for accounts and confirmation statements is current, reflecting adequate governance and regulatory adherence.
• Single director with full control: The sole director and 100% shareholder, Xxxxxx Xxxxxxxxname shown to subscribers, may facilitate streamlined decision-making and responsiveness.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities, especially tax and other creditors, to understand payment obligations and potential disputes.
• Assess cash flow forecasts and working capital management plans to determine how the company intends to resolve its liquidity shortfall.
• Review the business model and revenue generation strategy, given the declining turnover and minimal asset base, to evaluate sustainability.
• Confirm no undisclosed contingent liabilities or off-balance sheet obligations exist.
• Evaluate director’s plans for capital injection or restructuring to restore positive equity and solvency.