Company Number: 13054608

Analysis Date: 2025-07-20 11:45 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk due to persistent negative net assets and worsening net current liabilities over the last four years. These financial strains suggest an inability to meet short-term obligations without external support.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities have nearly doubled from £19.5k in 2022 to £35.5k in 2023, indicating erosion of shareholder equity and potential insolvency risk.
• Severe Working Capital Deficit: Net current liabilities increased from £18.9k in 2022 to £36.3k in 2023, highlighting liquidity challenges and potential cash flow constraints.
• Minimal Share Capital: With only £10 in share capital, the company has limited financial buffer to absorb losses or fund operations.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue accounts or confirmation statements, indicating sound regulatory compliance and governance practices.
• Stable Management Team: Two directors with consistent appointments and no negative conduct records reported.
• Micro-entity Status: Simplified reporting and limited operational scale may reduce complexity and operational overhead.

4. Due Diligence Notes:

• Investigate the source and nature of current liabilities to assess whether they are trade payables, loans, or other obligations and their maturity profiles.
• Review cash flow statements (not provided) to determine operational cash generation capabilities and whether the company is reliant on external funding.
• Assess any contingent liabilities or off-balance-sheet risks that may exacerbate financial stress.
• Evaluate the business model and revenue streams in the management consultancy sector (SIC 70229) for sustainability given the financial deficits.
• Confirm if there are any plans for recapitalization or restructuring to address the negative equity position.