Company Number: 12626067

Analysis Date: 2025-07-20 18:36 UTC

1. Risk Rating: HIGH
   The company shows a significant and worsening negative net asset position and net current liabilities, indicating solvency stress. The accumulated losses and high current liabilities relative to assets raise substantial concerns about the company's ability to meet its obligations.

2. Key Concerns:

• Persistent negative shareholders’ funds: The company’s equity position has deteriorated from a positive £3,798 in 2021 to a negative £42,081 in 2024, evidencing ongoing losses and erosion of capital.
• Negative net current assets: With current liabilities (£43,744) vastly exceeding current assets (£1,763) as of May 2024, liquidity risk is acute, raising concerns about the company’s short-term cash flow sufficiency.
• Reliance on director’s loans: Over £23,900 is owed to directors, indicating potential dependence on related-party funding rather than external financing, which may not be sustainable or indicative of operational stability.

3. Positive Indicators:

• Compliance with filing requirements: The company has no overdue accounts or confirmation statements, suggesting good regulatory compliance and governance discipline.
• Small company exemption and unaudited accounts: While limited in detail, these suggest the company is operating within its size thresholds, potentially lowering administrative burden.
• Stability in directorship: The single director has been in place since incorporation, indicating some stability in management.

4. Due Diligence Notes:

• Investigate the nature and terms of director’s current account balances to assess whether these represent loans, unpaid remuneration, or other liabilities, and the likelihood of repayment or conversion.
• Review the company’s business model and revenue streams given persistent losses to determine if turnaround plans or restructuring efforts are underway.
• Examine cash flow statements (not provided) to understand operational cash generation and timing of creditor payments.
• Assess contingent liabilities or off-balance-sheet obligations that might exacerbate liquidity or solvency risks.
• Confirm the company’s ability to continue as a going concern in light of negative equity and working capital deficits.