Company Number: 13125556

Analysis Date: 2025-07-20 13:12 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits extremely low asset levels and negligible liquidity, with only £1 in current assets and cash reported. Turnover is minimal (under £5,000 annually), indicating a very small scale of operations. The balance sheet shows virtually no net assets or working capital buffer, raising serious concerns about its ability to meet obligations and sustain operations.

2. Key Concerns:

• Liquidity and Working Capital: Current assets and cash reserves stand at £1, which is insufficient to cover even minor liabilities or operational expenses.
• Scale of Operations and Revenue: Turnover is minimal and has only slightly increased over the years, suggesting very limited business activity and cash flow generation.
• Financial Substance and Solvency: Net assets and shareholders’ funds are effectively nominal (£1), which signals no tangible equity cushion to absorb losses or support growth.

3. Positive Indicators:

• Compliance Status: The company is up to date with both accounts and confirmation statement filings, demonstrating regulatory compliance.
• Profitability in Small Scale: Despite low turnover, the company reports a small operating profit (£2,340 for 2024), indicating that the business is not currently loss-making at this scale.
• Single Director Stability: The sole director has remained consistent since incorporation, which may reflect stable management.

4. Due Diligence Notes:

• Investigate the nature and sustainability of the business model given the very low turnover and minimal assets.
• Confirm if the company has any undisclosed liabilities or off-balance sheet exposures that could impact solvency.
• Assess the financial support mechanism (e.g., director loans, external funding) that sustains the company’s operations given its negligible cash position.
• Review the contractual and operational arrangements to understand how the company can function with such limited financial resources.
• Confirm if the minimal turnover reported reflects actual trading or if the company is effectively dormant or a shell entity.