Company Number: 13689796

Analysis Date: 2025-07-19 12:21 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets and net current liabilities over multiple years, indicating ongoing solvency issues. The absence of cash at the latest year-end and reliance on director loans further exacerbate liquidity risk.

2. Key Concerns:

• Solvency and Negative Equity: The company’s net assets remain negative (£-1,158 at 31 October 2024), albeit improved from previous years, indicating accumulated losses and undercapitalization.
• Liquidity Strain: Cash reserves have depleted from £92,176 in 2023 to zero in 2024, with current liabilities slightly exceeding current assets, signaling potential cash flow difficulties.
• Operational Viability: The company has no employees recorded and appears to rely on director loans (£9,040), raising questions about its operational sustainability and funding model.

3. Positive Indicators:

• Timely Filings: Both accounts and confirmation statements are up to date with no overdue filings, suggesting compliance with regulatory requirements.
• Recent Change in Control and Management: Appointment of a new director and a significant controller with majority ownership in 2024 may indicate restructuring efforts or fresh capital injection prospects.
• Inventory Increase: Inventories have increased from £500 to £11,750, which may suggest some business activity or stock buildup in the latest year.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans and whether additional funding is expected or secured.
• Review detailed profit and loss information (not filed) to understand trading performance and losses leading to persistent negative equity.
• Assess operational model given zero employees and whether the business is actively trading or in a holding phase.
• Confirm any off-balance sheet liabilities or contingent liabilities that may worsen financial position.
• Understand reasons for the significant reduction in cash and whether working capital management is effective.