Company Number: 12818397

Analysis Date: 2025-07-19 12:04 UTC

1. Risk Rating: HIGH
   The company shows a significant decline in assets and equity from prior years to the most recent financial year, with net current assets and shareholders' funds collapsing to £100, which is a critical red flag for solvency and operational viability.

2. Key Concerns:

• Severe Asset and Equity Reduction: Fixed assets dropped from £22,365 in 2024 to zero in 2025; shareholders’ funds decreased dramatically from £37,427 to £100, indicating possible write-offs, disposals, or losses.
• Minimal Liquidity: Current assets have fallen sharply from £34,168 to £100, suggesting near-total depletion of liquid resources, which raises concerns about the company’s ability to meet short-term obligations.
• Lack of Profit and Operational Data: Absence of profit and loss figures or detailed operational commentary limits assessment of business sustainability; the micro-entity accounts provide minimal disclosures.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Active Status: The company remains active with no liquidation or administration proceedings reported.
• Clear Ownership and Control: Single director and 100% owner with full voting rights suggests centralized control, which may facilitate swift decision-making.

4. Due Diligence Notes:

• Investigate reasons behind the drastic decline in fixed assets and equity during the latest financial year; review notes to accounts or management explanations if available.
• Assess cash flow and operational performance data beyond balance sheet snapshots to understand sustainability and ongoing business activities.
• Confirm there are no outstanding liabilities or contingent obligations not reflected in the balance sheet.
• Evaluate the director’s plans or intentions to restore financial strength or whether the company is in the process of winding down.
• Verify any related party transactions or unusual accounting treatments that could explain the financial position.