Company Number: 12809351

Analysis Date: 2025-07-19 12:52 UTC

1. Risk Rating: HIGH
   The company exhibits severe financial distress characterized by persistent negative net assets and shareholders' funds, coupled with no trading activity in the most recent year. The liabilities significantly exceed assets, and the company is effectively insolvent.

2. Key Concerns:

• Negative Equity and Insolvency: The company’s net assets and shareholders’ funds have consistently been in the negative range (approximately -£12,700 to -£15,400), indicating insolvency.
• Dormant Status with No Income: The latest accounts confirm the company was dormant in the 2023-2024 period, with no turnover or income, implying no ongoing operational revenue to support liabilities or future operations.
• Unsecured Director Loans and Winding Up: The creditors amounting to £13,404 are disclosed as seed funding loans from directors, which are not expected to be repaid, and the directors indicate plans to wind up the company.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with its accounts and confirmation statement filings, indicating good regulatory compliance despite financial difficulties.
• Experienced Directors: The company has two directors continuously in office since incorporation who have transparently disclosed the financial position and intentions.
• Small Scale Operations: The company is classified as dormant with minimal assets and liabilities, suggesting limited operational complexity and exposure.

4. Due Diligence Notes:

• Investigate the basis and terms of the director loans to understand any contingent liabilities or formal agreements.
• Confirm the status and timing of the proposed winding-up process, including any creditor arrangements or insolvency proceedings.
• Review any potential obligations or risks arising from the company’s previous trading periods and any outstanding contractual commitments.
• Assess whether there are any undisclosed liabilities or pending legal issues given the company’s insolvency status.