Company Number: 12501577

Analysis Date: 2025-07-20 17:39 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent and increasing net liabilities, negative net current assets, very low cash balances, and reliance on director loans, indicating significant solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities worsened from £17,755 in 2023 to £19,120 in 2024, showing accumulated losses that erode the equity base and raise solvency doubts.
• Poor Liquidity Position: Cash on hand is negligible (£95 in 2024), while current liabilities exceed £13,000, mainly loans from directors, suggesting limited ability to meet short-term obligations without further financing.
• Dependence on Director Loans and External Debt: Over £12,600 of current liabilities are director loans, and there are bank loans of £5,835 due beyond one year, indicating reliance on related-party financing and external debt which may not be sustainable.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, showing regulatory compliance.
• Stable Management: The current director has been in place since incorporation, and there are no reported disqualifications or governance issues.
• Small Scale Operation: The company employs 1 person on average, which may limit overheads and financial exposure.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans and bank loans, including repayment schedules and security arrangements.
• Review recent trading performance, cash flow forecasts, and plans for addressing accumulated losses and negative equity.
• Confirm whether the company has any secured assets or contingent liabilities not disclosed in the accounts.
• Assess the business model sustainability given the continuous losses and negative working capital position.
• Clarify the role and level of involvement of the former significant controller (Miss Monica Marcella Newell) who resigned in 2021 but was a PSC.