Company Number: 13104671

Analysis Date: 2025-07-20 14:38 UTC

1. Risk Rating: HIGH
   The company demonstrates persistent net liabilities with negative shareholders’ funds, indicating solvency concerns. Its current liabilities vastly exceed current assets, raising liquidity risks. The negative net asset position over multiple years suggests ongoing financial distress.

2. Key Concerns:

• Negative Net Assets: The company recorded net liabilities of approximately £36,794 as of 31 December 2023, an improvement from prior years but still indicative of insolvency on a balance sheet basis.
• High Long-Term Creditors: Creditors due after more than one year stand at approximately £251,352, substantially higher than total assets, which raises questions about debt servicing capability and financial sustainability.
• Minimal Equity and Share Capital: The company has only £100 share capital and consistently negative shareholders’ funds, which may limit its ability to absorb losses or secure additional financing.

3. Positive Indicators:

• Stable Fixed Assets: Fixed assets remain constant at £205,537 across reporting periods, suggesting some asset stability which could potentially be leveraged or monetized.
• No Overdue Filings: The company is up to date with statutory filings and accounts, indicating compliance with regulatory requirements and no immediate governance red flags.
• Single Director with Full Control: The sole director holds full ownership and voting rights which can facilitate swift decision-making and strategic direction.

4. Due Diligence Notes:

• Confirm Debt Terms and Covenants: Investigate the nature, maturity, and repayment terms of the significant long-term creditors to assess refinancing or default risk.
• Cash Flow Analysis: Obtain detailed cash flow statements to evaluate operational liquidity and ability to meet short-term obligations, given current liabilities exceed current assets.
• Asset Valuation: Verify the valuation and realizability of fixed assets (£205k) for potential liquidation value or collateral use.
• Business Model Sustainability: Review revenue streams and profitability metrics, which are not disclosed here, to assess ongoing operational viability.
• Director Background Check: While the director appears compliant, further checks for any disqualifications or regulatory issues would be prudent given sole control.