Company Number: 13628189

Analysis Date: 2025-07-29 18:00 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in net assets and working capital over the last financial year, shifting from positive net assets of £100 in 2023 to negative net assets of £1,020 in 2024. This indicates an inability to cover short-term liabilities, posing a solvency risk.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities at £1,380 exceed current assets of £360, resulting in negative working capital of -£1,020, a direct liquidity concern.
• Erosion of Shareholders' Funds: Shareholders' funds declined from £100 to negative £1,020 within one year, suggesting losses or undisclosed liabilities impacting equity.
• No Employee Base and Minimal Asset Base: The company has zero employees and very minimal current assets, indicating limited operational activity and potential sustainability challenges.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up-to-date with both accounts and confirmation statement filings, indicating regulatory compliance.
• Micro-Entity Status: As a micro-entity, the company benefits from simplified reporting obligations, which may reduce administrative burdens.
• Active Status: The company remains active and not in liquidation or administration, which suggests it has not yet entered formal distress procedures.

4. Due Diligence Notes:

• Investigate the Composition of Current Liabilities: Detailed breakdown of creditors and due dates to assess immediacy of obligations.
• Examine Underlying Causes for Negative Equity: Review loss-making activities, contingent liabilities, or significant write-offs leading to net asset erosion.
• Assess Cash Flow and Funding Sources: Identify how the company is financing its negative working capital and whether external support (loans, director advances) is present.
• Review Director and Ownership Background: Given financial distress signals, evaluate director conduct records and People with Significant Control disclosures for governance risks.