Company Number: 12699322

Analysis Date: 2025-07-20 16:17 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits negative net assets and shareholders' funds as of the latest financial year (2024), indicating insolvency on a balance sheet basis. The presence of creditors due after more than one year exceeding current assets further increases solvency risk. Absence of employees and minimal cash reserves raise liquidity and operational sustainability concerns.

2. Key Concerns:

• Negative net assets of £187 as of June 2024, down from positive net assets in prior years, signaling worsening financial position.
• Long-term creditors (£1,186) substantially exceed current assets (£1,373 cash only), indicating potential liquidity mismatch and difficulty meeting obligations when due.
• No employees reported and negligible operating assets suggest limited operational activity or sustainability without external support.

3. Positive Indicators:

• Accounts and confirmation statement filings are up to date with no overdue submissions, indicating compliance with statutory requirements.
• The company benefits from audit exemption as a small entity, reducing administrative burden.
• Director has formally approved and signed the accounts, demonstrating governance adherence at director level.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors totaling £1,186 to assess repayment obligations and any restructuring plans.
• Review underlying business activities to understand revenue streams or reasons for lack of employees and minimal assets.
• Confirm whether there are any contingent liabilities or off-balance sheet risks not disclosed in the financials.
• Inquire about the director’s plans for restoration of positive net assets and operational viability.
• Verify any related party transactions or funding arrangements that might impact financial stability.