Company Number: 12520635

Analysis Date: 2025-07-29 18:13 UTC

1. Risk Rating: HIGH
   The company exhibits a significant solvency risk indicated by negative net assets (shareholders funds) of approximately £19,945 as of 31 March 2024, worsening slightly from prior years. The liabilities substantially exceed current assets, and total assets less current liabilities are negative, suggesting the company is technically insolvent.

2. Key Concerns:

• Negative Net Assets and Insolvency: Consistent negative net assets over multiple years, with total liabilities exceeding assets. This reflects an inability to cover obligations from available assets.
• Liquidity Issues: Current liabilities far exceed current assets (£151,605 vs £2,460 in 2024), indicating poor short-term liquidity and potential cash flow distress.
• Sustainability of Operations: Despite being active and having 3 employees, the company’s financial position suggests operational cash flow problems or reliance on external funding to continue.

3. Positive Indicators:

• Stable Fixed Assets: The company holds fixed assets valued at £129,200 consistently, which may provide some collateral or long-term value.
• Compliance with Filings: Accounts and confirmation statements are up to date, demonstrating regulatory compliance and good governance in terms of statutory filings.
• Established Management: A single director has been in place since incorporation, suggesting some managerial stability.

4. Due Diligence Notes:

• Review Detailed Cash Flow and Funding Sources: Understand how the company is financing its operations given the negative working capital and net assets.
• Examine Fixed Asset Valuation: Confirm the realizable value of fixed assets to assess if they can cover liabilities or be leveraged for financing.
• Investigate Causes of Persistent Losses or Negative Reserves: Determine operational or market factors contributing to ongoing negative equity and whether recovery plans exist.
• Director and Related Party Transactions: Check for any unusual or related party transactions that may affect financial health.
• Legal or Insolvency Proceedings: Verify absence of any pending insolvency actions or creditor enforcement.