Company Number: 12653127

Analysis Date: 2025-07-20 16:15 UTC

1. Risk Rating: HIGH
   The company exhibits significant financial weakness with minimal net assets (£100) and very low cash reserves (£420) as of 30 June 2024. The drastic decline from prior year net assets (£6,702 in 2023) indicates deteriorating financial health, raising serious concerns about its solvency and liquidity position.

2. Key Concerns:

• Solvency and Liquidity: Extremely low cash balance (£420) against current liabilities (£320) leaves a razor-thin working capital margin of £100, posing severe risk to meeting short-term obligations.
• Declining Net Assets: Net assets shrank from £6,702 in 2023 to only £100 in 2024, indicating erosion of capital and potential operational losses or unrecorded liabilities.
• Limited Financial Transparency: Accounts are abridged and unaudited, with no profit and loss statement filed, limiting insight into operational performance and cash flow generation capacity.

3. Positive Indicators:

• Compliance with Filings: Company is up to date with both accounts and confirmation statement filings, indicating no immediate governance or regulatory compliance issues.
• Active Status and No Insolvency Proceedings: The company is active with no liquidation or administration processes underway.
• Small Company Category: The company’s limited scale may reduce complexity and exposure to large liabilities.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decline in net assets and working capital from 2023 to 2024, including any undisclosed liabilities or write-downs.
• Obtain detailed profit and loss accounts and cash flow statements to assess operational profitability and cash generation.
• Review director’s declarations and management commentary for any contingent liabilities or going concern uncertainties.
• Confirm whether any related party transactions or unusual financial activities occurred during the year.
• Assess the adequacy of capitalisation given the minimal share capital (£100) and limited retained earnings.