Company Number: 13017933

Analysis Date: 2025-07-20 14:37 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in net assets and working capital, with net assets falling from £9,031 in 2022 to a marginal £243 in 2023. The current liabilities have increased substantially relative to current assets, resulting in negative net current assets of £4,779, a reversal from positive net current assets in prior years. Such trends indicate a heightened solvency risk.

2. Key Concerns:

• Solvency and Liquidity Deterioration: The company’s net assets have decreased sharply, and current liabilities now exceed current assets, signaling potential difficulties in meeting short-term obligations.
• Minimal Share Capital and Equity Cushion: Share capital remains nominal at £110, with shareholders’ funds barely positive at £243, providing limited buffer against financial distress.
• Limited Operational Scale: The company is classified as a micro-entity with only one employee (likely the director), suggesting limited operational capacity and possible reliance on the principal director for business continuity.

3. Positive Indicators:

• Timely Filing Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and good governance in reporting.
• Active Status and No Indication of Insolvency Proceedings: The company is active and not in liquidation, administration, or receivership, which supports operational continuity.
• Consistent Director and Ownership: The sole director and 100% shareholder are consistent, suggesting stable control and decision-making.

4. Due Diligence Notes:

• Examine Cash Flow Statements: To assess actual liquidity and cash generation beyond balance sheet figures.
• Review Reasons for Decline in Net Assets: Investigate whether the drop in net assets is due to losses, asset write-downs, or other financial events.
• Assess Revenue and Profitability Trends: Since financial data on turnover or profit is not presented, obtaining management accounts or tax filings would provide insight into operational stability.
• Confirm No Contingent Liabilities or Off-Balance Sheet Risks: Given the tight equity position, any contingent liabilities could exacerbate financial stress.
• Evaluate Customer and Contract Base: To determine sustainability of future revenues in management consultancy.