Company Number: 13912150

Analysis Date: 2025-07-19 11:53 UTC

1. Risk Rating: HIGH

The company demonstrates significant financial distress as evidenced by persistent negative net assets and shareholders' funds over multiple financial years. The balance sheet shows net liabilities of £8,555 as of the most recent year, with current liabilities substantially exceeding current assets, indicating solvency concerns. Furthermore, the company is dormant with no meaningful trading activity, raising questions about operational viability.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company has recorded continual net liabilities since incorporation, increasing from -£577 in 2022 to -£8,555 in subsequent years, highlighting an ongoing capital deficiency.
• Dormant Status and Lack of Trading Activity: No significant accounting transactions or employees were reported in the latest year, suggesting the business is not currently operational, which undermines revenue generation and cash flows.
• High Current Liabilities Relative to Minimal Current Assets: Current liabilities stand at £8,655 against current assets of only £100, reflecting poor liquidity and a potential inability to meet short-term obligations.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with accounts and confirmation statement submissions, avoiding regulatory penalties.
• Stable Board Composition: Directors and Persons with Significant Control have been consistent since incorporation, which could support future strategic decisions.
• Exemption from Audit: As a dormant micro-entity, the company is exempt from audit, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature and source of the significant liabilities causing negative net assets, including any related party transactions or contingent liabilities.
• Confirm the company's future operational plans given its dormant status and absence of employees.
• Assess whether the company has access to external funding or shareholder support to address its negative equity and liquidity shortfall.
• Review the directors' intentions and any restructuring or wind-up considerations, as prolonged dormancy with negative equity may attract regulatory scrutiny.