Company Number: 13518044

Analysis Date: 2025-07-20 12:40 UTC

1. Risk Rating: HIGH
   The company's financial position at the latest year-end indicates significant solvency and liquidity concerns, despite being active and compliant with filing deadlines.

2. Key Concerns:

• Severe Liquidity Deterioration: Current liabilities at £9,599 far exceed current assets of just £100, resulting in a negative net working capital of -£9,499, which suggests potential cash flow problems and difficulty meeting short-term obligations.
• Drastic Decline in Net Assets: Net assets plummeted from £23,411 in 2023 to merely £188 in 2024, reflecting a substantial erosion of equity and possibly operating losses or asset write-downs.
• Small Scale and Operational Fragility: The company remains a micro-entity with only one employee (the director), indicating limited operational capacity and dependency on a single individual, which may affect sustainability.

3. Positive Indicators:

• Up-to-date Compliance: The company has filed its accounts and confirmation statement on time with no overdue filings, suggesting good regulatory compliance and governance discipline.
• Stable Ownership and Management: The sole director and 75-100% shareholder is consistent, which may facilitate swift decision-making.
• No Indications of Insolvency Proceedings: The company is active, not in liquidation or administration, and no director disqualifications are reported.

4. Due Diligence Notes:

• Investigate the causes of the sharp decline in net assets and current assets between 2023 and 2024, including any impairment, trading losses, or one-off expenses.
• Review cash flow statements if available to assess actual liquidity and operating cash flow trends.
• Understand the nature of current liabilities and their due dates to evaluate short-term solvency risks.
• Assess the company’s order book, pipeline, or contracts to determine operational sustainability and revenue prospects.
• Confirm whether any related-party transactions or director loans exist that may impact financial stability.