Company Number: 13264391

Analysis Date: 2025-07-20 17:58 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in financial position over the latest year, moving from positive net assets of £23,536 in 2023 to net liabilities of £6,745 in 2024. This negative net asset position and working capital deficit indicate solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets & Working Capital Deficit: The company’s net current liabilities position (£6,745) signals an inability to cover short-term obligations with current assets.
• Rapid Financial Deterioration: A stark decline from positive net assets of £23,536 in prior years to a deficit within one year suggests operational or financial distress.
• Minimal Share Capital and Small Scale: With only £100 share capital and a micro-entity status, the financial buffer is very limited, increasing vulnerability to external shocks.

3. Positive Indicators:

• Compliance with Filings: The company is current with account and confirmation statement submissions, showing regulatory compliance.
• Experienced Director: The sole director has been in place since incorporation, which may indicate stable management continuity.
• Micro-Entity Filing: Reduced reporting requirements reflect the company’s small scale and suggest manageable administrative burdens.

4. Due Diligence Notes:

• Investigate Causes of Financial Decline: Review internal management reports or explanations to understand the drivers behind the sudden shift to net liabilities.
• Assess Cash Flow and Debt Structure: Examine cash flow statements and creditor terms to evaluate short-term liquidity pressures and potential insolvency risks.
• Check Director’s Background: Confirm no adverse conduct records or disqualifications for director Javinder Bhondi.
• Review Business Model and Revenue Streams: Given the SIC code for IT service activities, verify sustainability and demand in the current market context.