Company Number: 12535346

Analysis Date: 2025-07-20 15:58 UTC

1. Risk Rating: HIGH
   The company’s financial statements exhibit significant negative net current assets and net liabilities in the latest year, indicating severe solvency issues. While it remains active and compliant with filings, its ability to meet short-term obligations is questionable.

2. Key Concerns:

• Negative Net Current Assets: The 2024 balance sheet shows current liabilities of £33,357 against effectively zero current assets, resulting in net current liabilities of the same amount, a material deterioration from prior years.
• Consistent Net Losses or Negative Equity: The company’s net assets have moved from positive £14,157 in 2023 to negative £33,357 in 2024, highlighting operational losses or increased liabilities not offset by assets.
• Limited Financial Transparency: As a micro-entity, the filing provides minimal detail on income, cash flows, or specific liabilities, restricting thorough assessment of liquidity or operational sustainability.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with accounts and confirmation statements, indicating good governance and regulatory compliance.
• Stable Management: The sole director and 75-100% shareholder has maintained control since incorporation, suggesting consistent leadership.
• Small Employee Base: Employing 3 staff potentially limits fixed costs, which may help in eventual financial recovery if revenue improves.

4. Due Diligence Notes:

• Obtain detailed profit and loss and cash flow statements to understand the root causes of the negative net assets and assess operational viability.
• Investigate the nature and aging of current liabilities to evaluate potential risks of creditor actions or insolvency proceedings.
• Assess the company’s revenue streams, contracts, and business model under SIC code 96090 to determine sustainability prospects.