Company Number: 13303561

Analysis Date: 2025-07-20 16:26 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in its financial position with net liabilities of £7,842 as of 31 March 2024, compared to net assets of £298 the previous year. The current liabilities substantially exceed current assets by £12,961, indicating a poor liquidity position and potential solvency issues.

2. Key Concerns:

• Negative Net Assets: The company’s shareholders’ funds have moved from a positive £298 to a negative £7,842 within one year, signaling accumulated losses or write-downs.
• Working Capital Deficit: A large deficit of £12,961 in net current assets suggests difficulty in meeting short-term obligations as they fall due.
• Limited Operating Scale: The company employs only one person and has minimal fixed and current assets, which may limit operational resilience and growth potential.

3. Positive Indicators:

• Current Compliance: The company is up to date with its accounts and confirmation statement filings, indicating adherence to regulatory requirements.
• No Audit Requirement: As a micro-entity, the company benefits from simplified reporting requirements and exemption from audit, reducing administrative burden.
• Stable Directorship: The sole director has been in place since incorporation without reported disqualifications, which supports governance continuity.

4. Due Diligence Notes:

• Investigate the cause of the significant increase in current liabilities and the negative equity position—whether this reflects operating losses, creditor terms, or one-off charges.
• Review cash flow statements (if available) to assess liquidity trends and the company’s ability to generate cash internally.
• Understand the company’s business model and contract pipeline given the low asset base and employee count, to evaluate operational sustainability.
• Confirm the absence of any contingent liabilities or off-balance sheet obligations that might exacerbate financial risk.