Company Number: 12666673

Analysis Date: 2025-07-20 17:08 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net assets and net current liabilities over multiple years, indicating ongoing financial distress and insufficient resources to meet short-term obligations. The micro-entity status limits available financial detail, but the consistent net liability position and lack of employees raise concerns about operational viability and solvency.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficits: The company has reported net liabilities of £1,535 as of June 2024, worsening from previous years. Current liabilities exceed current assets, signaling liquidity challenges.
• Lack of Operational Activity: No employees reported, and minimal current assets (£3,000) suggest limited or no substantive business operations, raising questions about revenue generation and sustainability.
• Concentration of Control with Related Directors: Two directors/shareholders with full control, including a recent director change, may increase governance risk, especially given the absence of independent oversight and the financial difficulties.

3. Positive Indicators:

• Current Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, indicating adherence to statutory obligations.
• No Indication of Formal Insolvency Proceedings: The company is active and not in liquidation, administration, or receivership.
• Micro-Entity Filing Exemption: The company benefits from simplified reporting requirements, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature and source of current liabilities to assess if they are trade creditors, loans from directors, or other obligations.
• Clarify the reason for continued operation despite recurring losses and negative equity; understand management’s strategy for returning to profitability or restructuring.
• Review director backgrounds, especially the recent change in directorship in June 2023, for any prior insolvency involvement or conflicts of interest.
• Confirm existence of any contingent liabilities or off-balance sheet commitments not disclosed in micro-entity accounts.
• Assess relationship between shareholder loans (if any) and current liabilities to gauge potential financial support or risk.