Company Number: 13101933

Analysis Date: 2025-07-20 15:19 UTC

1. Risk Rating: HIGH
   The company exhibits a concerning solvency position with negative shareholders’ funds of £4,311 as of the latest financial year end 31 December 2023, coupled with current liabilities significantly exceeding current assets. This raises immediate questions regarding its ability to meet short-term obligations.

2. Key Concerns:

• Negative Equity and Net Current Liabilities: Shareholders’ funds declined from positive £1,063 in 2022 to negative £4,311 in 2023, indicating accumulated losses or write-downs. Current liabilities of £5,393 exceed current assets of £1,690 by a large margin, reflecting poor liquidity and working capital deficiency.
• Rapid Deterioration in Financial Position: The jump in current liabilities from £105 in 2022 to £5,393 in 2023 is significant and unexplained within the provided data, suggesting potentially increased borrowing or delayed payables that may strain cash flows.
• Single Director and Shareholder Concentration: Mr. Billy Roy Leslie Davies controls 100% of shares and voting rights and is the sole director, which may concentrate operational and governance risks without broader oversight or independent management.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with statutory requirements and reducing regulatory risk.
• Micro-Entity Status: The company remains small in scale, which may limit complexity and operational overhead.
• Stable Employee Base: Employment of one person consistently suggests controlled staffing and possibly limited operational scale, which can be easier to manage.

4. Due Diligence Notes:

• Investigate the nature and cause of the sharp increase in current liabilities between 2022 and 2023, including creditor aging and any contingent liabilities.
• Review cash flow statements or bank reconciliations (if available) to assess liquidity management and examine if there are any overdue payments or collection issues.
• Confirm any related party transactions or director loans that may affect the financial position.
• Assess future business plans or capital injection strategies from the sole director or external sources to restore solvency.
• Verify any risk of insolvency proceedings or creditor actions given the negative net assets and liquidity shortfall.