Company Number: 12466617

Analysis Date: 2025-07-29 20:10 UTC

1. Risk Rating: MEDIUM
   The company demonstrates marginal solvency with net assets at zero for the latest financial year and a slight deterioration in net current assets. While it is not insolvent, the thin margin and negative working capital raise caution.

2. Key Concerns:

• Negative Net Current Assets in Latest Year: The company’s current liabilities (£3,792) exceed current assets (£3,561) by £231, indicating potential liquidity pressure.
• Minimal Share Capital and Equity Base: With only £2 share capital and net assets of £0, the company has limited equity buffer to absorb losses or financial shocks.
• Loans to Directors: The company has interest-free advances to directors amounting to £960, unsecured and repayable on demand, which could strain cash resources or cause related-party transaction concerns.

3. Positive Indicators:

• Timely Filing Compliance: Both accounts and confirmation statement are up to date with no overdue filings, indicating good regulatory compliance.
• Stable Management Team and PSC Structure: Directors and persons of significant control have remained consistent since incorporation, suggesting operational stability and clear governance.
• Micro Entity Filing and Small Scale: The company’s micro entity status implies a lower complexity business model with limited scale, reducing complexity and possibly operational risks.

4. Due Diligence Notes:

• Cash Flow Analysis: Investigate detailed cash flow statements (not provided) to assess actual liquidity management and payment cycles given the negative working capital.
• Directors’ Advances Terms and Impact: Clarify the nature, repayment expectations, and any potential conflicts of interest related to the advances to directors.
• Business Viability and Revenue Trends: Examine underlying trading performance and revenue generation trends to understand sustainability beyond the balance sheet snapshot.
• Review of Contingent Liabilities or Off-Balance Sheet Items: Verify absence of off-balance sheet exposures that could impact solvency.