Company Number: 13884603

Analysis Date: 2025-07-29 17:27 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent net current liabilities and negative shareholders' funds. Its financial position shows no improvement over three years, indicating ongoing operational and financial distress.

2. Key Concerns:

• Persistent Negative Net Assets: The company has net liabilities of approximately £19,889 as of 28 February 2024, unchanged from prior years, indicating accumulated losses and insufficient equity.
• High Reliance on Director’s Loan: Current liabilities of £20,913 mainly consist of a director’s loan account (£20,514), signaling dependence on related-party funding to meet short-term obligations rather than operational cash flow.
• Lack of Operational Activity: The company reported no employees during the year, and the financial statements do not disclose turnover, suggesting minimal or no trading activity, raising doubts about operational sustainability.

3. Positive Indicators:

• Up-to-Date Filings: Both accounts and confirmation statement are filed on time with no overdue filings, indicating compliance with Companies House requirements.
• Active Status: The company remains active with no indication of liquidation or administration proceedings.
• Clear Ownership and Control: Ownership is concentrated with a single individual who has full control, potentially allowing for decisive management actions.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account: interest, repayment plans, and any formal agreements.
• Clarify the company’s trading status and revenue generation, as turnover figures are not disclosed and no employees are reported.
• Assess the director’s strategy for addressing accumulated losses and improving the balance sheet.
• Review any intercompany transactions or related-party dealings not visible in the accounts.
• Consider potential contingent liabilities or off-balance sheet obligations given the company’s financial position.