Company Number: 13878999

Analysis Date: 2025-07-20 13:38 UTC

1. Risk Rating: HIGH
   The company exhibits sustained negative net assets and net current liabilities over the last three reported years, indicating an ongoing solvency risk. The micro-entity size and absence of audit provide limited transparency, but the consistent deficit and lack of liquidity are concerning.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities stand at approximately £11,714, unchanged over multiple years, showing no improvement in financial position.
• Poor Liquidity: Current liabilities significantly exceed current assets (£12,835 vs. £192 in the latest year), resulting in substantial net current liabilities and indicating an inability to meet short-term obligations.
• Lack of Financial Growth or Profitability: No evidence of increased assets or reduction of liabilities; fixed assets and current assets have diminished, reflecting potential operational or funding challenges.

3. Positive Indicators:

• Compliance: The company is current with its statutory filings (accounts and confirmation statements) and is not in liquidation or administration, indicating regulatory compliance and ongoing operation.
• Sole Director Ownership: The single director and 75-100% shareholder control suggest clear governance lines without apparent conflicts of control.
• Small Scale Operation: As a micro-entity with one employee (the director), overheads may be low, potentially allowing for lean operations or restructuring opportunities.

4. Due Diligence Notes:

• Investigate the source of ongoing funding or shareholder loans sustaining the company given persistent negative equity.
• Review cash flow statements and management accounts (if available) to assess operational cash inflows and outflows not visible in micro-entity filings.
• Understand the business model and revenue streams in the context of the SIC codes (artistic creation and specialised design) to evaluate potential for turnaround or growth.
• Clarify any contingent liabilities or related party transactions that may impact solvency.
• Confirm the director’s plans or intentions regarding recapitalisation or restructuring.