Company Number: 13415487

Analysis Date: 2025-07-29 13:47 UTC

1. Risk Rating: HIGH
   The company's financial data for the year ending 31 May 2022 shows net liabilities of £2,052, indicating insolvency at that date. This negative net asset position raises significant concerns about the company's ability to meet its obligations as they fall due.

2. Key Concerns:

• Insolvency: The balance sheet reveals total net liabilities, with current liabilities (£4,478) far exceeding current assets (£26), resulting in a negative net current asset position (-£4,452). This situation suggests severe liquidity issues and an inability to cover short-term obligations.
• Lack of Operating Activity: The accounts state zero employees and minimal current assets, implying limited or no trading activity. This raises questions about operational sustainability and revenue generation.
• Minimal Capitalization: The company’s share capital is only £2, which is nominal and provides no meaningful equity buffer to absorb losses or support operations.

3. Positive Indicators:

• Compliance with Filing: The company is up-to-date with statutory filings, including accounts and confirmation statements, with no overdue returns noted. This suggests management is maintaining regulatory compliance.
• Active Status: The company remains active and not in liquidation or administration, indicating it has not yet entered formal distress procedures.
• Director Presence: There is a named director with a registered address, implying a responsible party is in place to manage the company.

4. Due Diligence Notes:

• Investigate subsequent financial periods (post-May 2022) to determine if the financial position has improved or deteriorated, particularly given the data is now over two years old.
• Clarify the nature and extent of business operations, including revenue streams and cash flow, as the micro-entity accounts provide limited insight.
• Assess any related-party transactions or director loans that may impact the financial stability but are not disclosed in the minimal accounts.
• Confirm the director’s background and any potential red flags relating to governance or regulatory compliance.
• Review if the company has any contingent liabilities or pending legal issues that may affect solvency.