Company Number: 12810796

Analysis Date: 2025-07-29 16:39 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by persistent net liabilities increasing from -£5,598 in 2020 to -£23,317 in 2024. Negative net current assets and net liabilities indicate an inability to meet short-term obligations from current assets. The absence of audit and reliance on micro-entity filing provisions further limit transparency.

2. Key Concerns:

• Negative Net Assets & Working Capital Deficit: The company’s net liabilities and negative net current assets have worsened over four years, signaling ongoing financial distress.
• Low Share Capital: Share capital stands at a nominal £1.00, providing minimal equity buffer against losses.
• Reliance on Director Support: Directors’ statements indicate continued support is necessary to sustain operations, raising questions about operational sustainability and cash flow independence.

3. Positive Indicators:

• Timely Filing Compliance: No overdue accounts or confirmation statements suggest good regulatory compliance and governance discipline.
• Stable Directorship: Consistent leadership with a single director and significant control held by two individuals may facilitate swift decision-making.
• Increasing Fixed Assets: Fixed assets have increased slightly, potentially indicating investment in long-term capabilities.

4. Due Diligence Notes:

• Review detailed cash flow statements and creditor aging to assess liquidity pressures and ability to pay immediate obligations.
• Investigate the nature and terms of director support or loans to understand contingent liabilities or off-balance-sheet funding.
• Examine the business model viability and revenue trends given the sustained losses and negative equity.
• Confirm no undisclosed contingent liabilities or regulatory issues beyond the filed accounts.
• Assess related party transactions considering the significant shareholdings by directors and PSCs.