Company Number: 13001150

Analysis Date: 2025-07-29 20:04 UTC

1. Risk Rating: HIGH
   The company exhibits a persistently negative net asset position and net current liabilities over multiple years, indicating significant solvency and liquidity concerns despite being classified as micro-entity. The dormant SIC code suggests inactivity, raising questions about operational viability and financial sustainability.

2. Key Concerns:

• Negative Net Assets and Working Capital: Net current liabilities of £245 and negative shareholders’ funds indicate inability to cover short-term debts from current assets.
• Dormant Company Classification: The SIC code 99999 implies no significant trading activity, which may reflect a lack of revenue generation or business operations.
• Minimal Share Capital and Single Director Control: Share capital of only £1 and sole ownership/control by one director could limit financial resources and governance oversight.

3. Positive Indicators:

• Compliance with Filing Obligations: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.
• Micro-Entity Reporting Exemption Used Appropriately: The company files under micro-entity provisions, consistent with its size, which reduces administrative burden.
• Single Employee/Director Model: Operational simplicity may reduce overhead costs.

4. Due Diligence Notes:

• Investigate the company’s business activity and reason for dormant SIC classification despite being active, to clarify operational status.
• Review any off-balance sheet liabilities or contingent obligations that may exacerbate financial risk.
• Assess cash flow projections and planned funding sources to understand how the company intends to address the persistent negative net assets.
• Confirm the background and financial capacity of the sole director/ultimate controller to support the company going forward.