Company Number: 12582234

Analysis Date: 2025-07-29 16:38 UTC

1. Risk Rating: HIGH
   The company exhibits negative net assets (net liabilities) increasing from £-7,975 in 2023 to £-19,550 in 2024, indicating deteriorating solvency. Current liabilities exceed current assets when including long-term creditors, suggesting potential liquidity stress.

2. Key Concerns:

• Negative Net Assets: Persistent and growing net liabilities imply the company’s liabilities surpass its assets, raising solvency concerns.
• Long-term Creditors: The presence of creditors falling due after more than one year (£62,494 in 2024) without corresponding fixed assets or equity backing increases refinancing and repayment risk.
• Limited Financial Transparency: The company does not file a profit and loss account publicly, reducing insight into operational profitability and cash flow, which complicates risk assessment.

3. Positive Indicators:

• Timely Filings: The company’s accounts and confirmation statements are up to date with no overdue filings, indicating compliance with regulatory requirements.
• Micro-Entity Reporting: Simplified reporting under FRS 105 reduces administrative burden and suggests a small-scale operation which can be easier to manage.
• Active Status and Single Director Stability: The company is active with a consistent director since incorporation, implying operational continuity.

4. Due Diligence Notes:

• Request detailed management accounts or internal financial statements to evaluate profitability and cash flow trends.
• Clarify the nature and terms of the long-term creditors to assess repayment obligations and refinancing risk.
• Investigate whether there are any contingent liabilities or off-balance sheet risks not reflected in the micro-entity accounts.
• Confirm the company’s business model viability given the negative equity and assess prospects for capital injection or debt restructuring.