Company Number: 12589868

Analysis Date: 2025-07-20 16:00 UTC

1. Risk Rating: HIGH
   Justification: The company demonstrates extremely low net assets and minimal working capital, declining sharply from its initial year. Current assets have significantly reduced while current liabilities remain substantial, indicating tight liquidity. The company operates with only one employee and minimal share capital, which may constrain operational capacity and financial resilience.

2. Key Concerns:

• Liquidity Risk: Current assets (£5,109) barely cover current liabilities (£4,818), resulting in a negligible net current asset margin of £291, which limits buffer against unexpected cash flow needs.
• Declining Financial Position: Net assets have decreased from £1,546 in 2020 to £291 in 2024, signaling erosion of financial stability.
• Operational Scale and Capacity: The company employs only one person, has minimal share capital (£100), and reports very low asset base, raising questions about its ability to sustain ongoing operations or absorb shocks.

3. Positive Indicators:

• Regulatory Compliance: The company is active with no overdue accounts or confirmation statements, demonstrating adherence to statutory filing requirements.
• Consistent Director Oversight: The sole director has been in place since incorporation, providing continuity in management.
• Micro-entity Reporting: Use of micro-entity provisions reflects an appropriately scaled reporting framework reducing administrative burdens.

4. Due Diligence Notes:

• Investigate the reason for the significant decline in current assets over recent years and whether this reflects reduced business activity or asset disposals.
• Review cash flow statements and any available management accounts to assess operational cash generation and short-term liquidity management.
• Verify whether the company has any contingent liabilities or off-balance-sheet obligations that might exacerbate solvency risk.
• Understand the nature of current liabilities, their maturity, and payment terms to evaluate potential liquidity crunches.
• Assess any strategic plans or capital injections envisaged by management to restore financial strength.