Company Number: 13025742

Analysis Date: 2025-07-20 14:39 UTC

1. Risk Rating: HIGH
   The company shows persistent and increasing negative net assets and net current liabilities over successive years, indicating serious solvency and liquidity issues. The micro-entity size and lack of turnover further exacerbate concerns regarding operational sustainability.

2. Key Concerns:

• Solvency Risk: The net liabilities have grown from £5,233 in 2020 to £22,192 in 2024, reflecting ongoing losses and inability to cover obligations with assets.
• Liquidity Concerns: Current liabilities significantly exceed current assets (£24,119 vs. £1,625 in 2024), indicating potential cash flow difficulties to meet short-term debts.
• Operational Stability: Zero reported turnover in the latest year with continuing losses (£7,082 in 2024) and minimal income (£27) suggests the business is not generating sustainable revenue.

3. Positive Indicators:

• The company complies with filing deadlines for accounts and confirmation statements, indicating regulatory compliance and governance discipline.
• Director and sole significant controller remain consistent, potentially allowing for stable decision-making.
• The company is small and benefits from micro-entity reporting standards, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature of the liabilities driving the large current liabilities and whether any repayment plans or creditor negotiations exist.
• Assess the management’s plan to restore profitability or restructure operations given zero turnover in recent periods.
• Confirm if the company has access to external funding or shareholder support given the negative equity position.
• Verify the completeness and accuracy of financial records given the unaudited status and limited financial disclosures.
• Review any contingent liabilities or off-balance sheet commitments not evident in the accounts.