Company Number: 14207975

Analysis Date: 2025-07-20 14:00 UTC

1. Risk Rating: HIGH
   The company shows zero net assets and current assets as of the latest financial year end (31 July 2024), despite generating modest turnover. This indicates a depletion of working capital and no tangible asset base to cover liabilities. The absence of cash or current assets raises significant solvency and liquidity concerns.

2. Key Concerns:

• Negative Working Capital Trend: Current assets dropped from £6,201 in 2023 to £0 in 2024, while current liabilities are reported as zero, suggesting either a write-off or failure to recognize liabilities, which is unusual and warrants verification.
• No Cash or Liquid Assets: The company held £1,587 cash in 2023 but reported zero cash in 2024, indicating potential liquidity issues to meet short-term obligations.
• Lack of Employees and Operational Scale: The accounts disclose zero employees, implying very limited operational activity and possible dependency on the director or subcontractors, which may affect sustainability.

3. Positive Indicators:

• Turnover Growth: Turnover increased from £6,201 in 2023 to £47,621 in 2024, showing some revenue growth.
• Profitability: A small profit (£391) was recorded in 2024 despite low turnover, indicating some ability to control costs.
• Compliance: Accounts and confirmation statements are filed on time with no overdue filings, reflecting regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Investigate the nature of the zero current liabilities in 2024 and confirm accuracy of balance sheet figures; check for any unreported or contingent liabilities.
• Verify cash flow and bank statements to understand liquidity position and timing of receipts/payments.
• Assess the business model and operational setup, including whether the company relies on subcontractors or third parties given zero employees.
• Clarify the director’s plans for capital injection or business development to improve asset base and working capital.
• Review any related party transactions or director loans that may impact financial stability.