Company Number: 12949963

Analysis Date: 2025-07-20 14:18 UTC

1. Risk Rating: HIGH
   The company shows signs of significant financial distress, particularly with negative net assets and liabilities exceeding total assets. This raises serious solvency concerns.

2. Key Concerns:

• Negative Shareholders Funds: The net assets reported for 2023 are -£7,069, indicating the company's liabilities exceed its assets, which poses a solvency risk.
• Persistent Current Liabilities: Current liabilities remain constant at £11,700 over the last three years, while current assets have decreased drastically, suggesting liquidity issues.
• Minimal Operating Assets and Cash: Fixed assets are minimal (£4,500) and current assets are very low (£55 in 2023), which could impair the company's ability to meet short-term obligations.

3. Positive Indicators:

• Timely Filing: The company is up to date on both accounts and confirmation statement filings, indicating good regulatory compliance.
• Active Trading Status: The company is active, not in liquidation or administration, showing operational continuity.
• Stable Management: The sole director has been in position since incorporation, suggesting consistent leadership.

4. Due Diligence Notes:

• Investigate the nature of the £11,700 creditor balance, particularly if it is long-term debt or trade payables, and any repayment plans.
• Review cash flow statements or bank statements to assess liquidity and cash management, as current assets are insufficient to cover current liabilities.
• Examine the business model and revenue generation capability given the very low current assets and negative net assets.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not disclosed.
• Assess the director’s plans or strategies to improve the financial position or whether external financing is anticipated.