Company Number: 13829479

Analysis Date: 2025-07-20 15:31 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (-£4,563 as of 31 January 2024), indicating insolvency on a balance sheet basis. Additionally, the accounts report a significant creditor balance classified as amounts falling due after more than one year (£10,987 in 2024), effectively a director loan, which is currently funding the business. With no fixed assets and no employees, operational scale is minimal and dependent on director funding.

2. Key Concerns:

• Solvency and Negative Equity: The company’s net liabilities position is a critical red flag suggesting it cannot currently meet its obligations from its assets.
• Reliance on Director Loan: The director is providing funding via an advance classified as a creditor, indicating external financing is limited or unavailable. Repayment is contingent on future profitability, which is uncertain.
• Lack of Operational Activity: No employees and no fixed assets, combined with a micro-entity classification, suggests limited trading or business scale. This raises concerns over sustainability and growth potential.

3. Positive Indicators:

• Timely Filing and Compliance: The company is current with both accounts and confirmation statement filings, showing good regulatory compliance.
• Single Director and PSC Consistency: The sole director and person of significant control is the same individual, which simplifies governance oversight.
• Incremental Growth in Current Assets: Current assets increased from £2,374 to £6,424 year over year, indicating some asset accumulation or cash inflows.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan, including repayment schedule and whether it is formally documented.
• Assess the company’s trading activity and revenue generation since incorporation, as no employees and no fixed assets suggest limited operations.
• Review cash flow statements or management accounts if available to understand liquidity trends and operational cash generation.
• Confirm any off-balance sheet liabilities or contingent liabilities not reflected in the micro-entity accounts.
• Clarify the company’s business plan and prospects given the negative equity and reliance on director financing.