Company Number: 13009934

Analysis Date: 2025-07-20 14:39 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net assets from £446 in 2022 to a negative £80 in 2023, with net current liabilities replacing previous net current asset positive balances. The overall financial position indicates potential solvency and liquidity issues.

2. Key Concerns:

• Negative Net Assets and Net Current Liabilities: The company moved from positive net assets and net current assets in 2022 to negative positions in 2023, signaling weakened financial stability and possible difficulty meeting short-term obligations.
• Large Related Party Payables: The company owes £128,481 to a related party (Azure Communications Limited) with no movement during the year, suggesting a substantial intra-group liability that may impact cash flows.
• No Employees and Limited Operational Activity: The accounts report zero employees, and the company operates in printing not elsewhere classified, a sector typically requiring operational capacity. This raises questions about ongoing business activity and sustainability.

3. Positive Indicators:

• Timely Filing and Compliance: The company is currently active, with no overdue accounts or confirmation statements, indicating compliance with statutory requirements.
• Cash Balance Increased: Despite current liabilities exceeding current assets, cash at bank increased from £114,301 to £143,918, which could provide some liquidity cushion.
• Experienced Control Group: The three significant controllers have directorship and voting rights, which may facilitate coordinated management decisions.

4. Due Diligence Notes:

• Examine the nature and terms of the related party balance of £128,481: Understand if this is a loan, trade payable, or other, and the repayment terms or any support arrangements.
• Review operational activities and revenue streams: Given zero employees and negative net assets, clarify current business operations and future sustainability plans.
• Assess cash flow forecasts and working capital management: To evaluate if the company can meet short-term liabilities given the net current liabilities position.
• Investigate reasons for the sharp decline in debtors and net current assets: Debtors dropped from £123,171 in 2022 to £51,359 in 2023, potentially impacting revenue recognition or collection issues.
• Confirm no contingent liabilities or off-balance sheet risks: The small notes disclose no significant post balance sheet events, but further enquiry is prudent.