Company Number: 13788642

Analysis Date: 2025-07-20 16:47 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, evidenced by persistent negative net current assets and shareholders' funds over multiple years. Current liabilities substantially exceed current assets, indicating an inability to cover short-term obligations from available liquid resources.

2. Key Concerns:

• Negative Working Capital: The latest accounts show net current liabilities of £4,610 as of June 2024, worsening from previous years, signaling liquidity stress.
• Negative Shareholders’ Funds: Shareholders’ funds stood at negative £4,710, demonstrating accumulated losses and erosion of equity capital.
• Intercompany Debt Reliance: A large portion of current liabilities (£6,100) are amounts owed to group undertakings, suggesting dependency on related party funding which may not be sustainable long term.

3. Positive Indicators:

• Timely Compliance: The company is up to date with both accounts and confirmation statement filings, indicating good regulatory compliance.
• Continued Director Support: Directors have stated the company is a going concern based on their support, which may provide short-term operational stability.
• Small Employee Base: With only 2 employees, the company likely maintains a lean cost structure, which could aid in managing expenses.

4. Due Diligence Notes:

• Investigate the nature and terms of the amounts owed to group undertakings to assess the sustainability and risk of funding withdrawal.
• Review cash flow statements or management accounts (if available) for evidence of ongoing operational cash generation or reliance on external funding.
• Confirm if any contingent liabilities or off-balance sheet obligations exist that could exacerbate financial risk.
• Assess the directors’ plans or strategies to return the company to profitability and positive equity.
• Consider the financial position and health of the parent company (Aureolin Group Limited) as it controls 75-100% of shares and voting rights.