Company Number: 13015645

Analysis Date: 2025-07-29 13:55 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, with increasing net current liabilities and net asset deficits over multiple years. The ongoing losses and reliance on related party loans without formal repayment terms exacerbate financial instability.

2. Key Concerns:

• Persistent Negative Net Assets: The company’s net liabilities have increased from £-22,620 in 2021 to £-26,974 in 2024, indicating erosion of equity and long-term solvency issues.
• Severe Liquidity Deficit: Current liabilities (~£35k) vastly exceed current assets (£400), resulting in negative working capital (~£-34,798), which suggests the company cannot meet short-term obligations from readily available resources.
• Dependence on Related Party Loans: £34,298 of the creditors are loans from connected companies linked to directors, interest-free and unsecured with no formal repayment schedule, raising concerns about financial sustainability and governance.

3. Positive Indicators:

• Timely Filing Compliance: No overdue accounts or confirmation statement filings indicate regulatory compliance and good governance discipline.
• Stable Director and PSC Structure: There is a single director with a clear appointment history and a single major shareholder entity holding 75-100% control, which may facilitate clear decision-making.
• Existence of Intangible Assets: Internally generated software assets valued at £7,824, although amortizing, represent some underlying operational capability and investment in intellectual property.

4. Due Diligence Notes:

• Investigate the nature and recovery prospects of related party loans and whether there is a plan to formalize repayment terms or convert these into equity to improve balance sheet strength.
• Assess cash flow forecasts and operational plans to understand how the company intends to bridge the significant liquidity gap and achieve profitability.
• Review the business model viability in the context of its SIC code (other business support services) and competitive environment to determine if losses are due to start-up phase or structural issues.
• Confirm no director disqualifications or governance issues beyond the data provided, given the director’s South African nationality and possible cross-jurisdictional considerations.