Company Number: 12674468

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net assets, moving from positive £6,121 at 31 March 2023 to negative £16,067 at 30 June 2024, indicating insolvency on a balance sheet basis. Current liabilities have increased markedly, and net current liabilities have worsened substantially, signaling liquidity stress.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities position at the latest year-end suggests it may be insolvent. This is a fundamental solvency red flag.
• Liquidity Strain: Current liabilities (£39,650) greatly exceed current assets (£342), indicating inability to meet short-term obligations from liquid resources.
• Declining Fixed Assets: Fixed assets have declined from £38,313 to £23,241, possibly due to disposals or write-downs, which may reflect operational challenges or attempts to generate cash.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, demonstrating regulatory compliance and good governance practices.
• Stable Employment: The company maintains a consistent headcount (2 employees), which may indicate operational continuity.
• Experienced Directors: The directors have been in place since incorporation and are resident in the UK, which supports stability in management.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp decline in net assets and increase in liabilities between March 2023 and June 2024.
• Request cash flow statements and profit & loss accounts to assess operational cash generation and profitability trends.
• Review any contingent liabilities, related party transactions, or recent creditor disputes that could impact financial health.
• Confirm whether any restructuring or refinancing efforts are underway or planned given the current negative equity position.