Company Number: 13314384

Analysis Date: 2025-07-29 14:13 UTC

1. Risk Rating: HIGH
   The company's financial position at the most recent year-end (2024-04-30) shows zero assets, zero liabilities, and zero net assets, a significant deterioration from the prior two years where net assets were approximately £49,770. This sudden drop to nil net assets raises immediate solvency concerns. The micro-entity accounts lack detail on income or cash flow, but the balance sheet suggests the business may have ceased trading or disposed of its assets.

2. Key Concerns:

• Solvency deterioration: The balance sheet for 2024 shows no fixed or current assets and no liabilities, implying either asset write-off, disposal, or cessation of trading, which questions the company’s ability to meet ongoing obligations.
• Sustainability of operations: The company reported 6 employees in both 2023 and 2024, yet with no reported assets or liabilities in 2024, it is unclear how payroll and operating expenses are being funded, indicating potential operational instability.
• Director turnover and control: One director resigned in early 2024, and a person with significant control (owning 25-50% shares) was appointed in 2023, possibly indicating changes in governance or ownership structure that warrant review.

3. Positive Indicators:

• Compliance with filings: The company is current on its accounts and confirmation statement filings, with no overdue documents, demonstrating regulatory compliance.
• Micro-entity status: The company qualifies as a micro-entity, implying relatively straightforward reporting requirements and potentially limited complexity in operations.
• Previous positive net asset position: Until the 2024 accounts, the company showed positive net assets (~£49,770), indicating prior financial stability.

4. Due Diligence Notes:

• Investigate the cause of the complete write-down or removal of all assets in the latest accounts and whether the company has ceased trading or sold key assets.
• Review cash flow statements or management accounts (if available) for 2023-2024 to understand liquidity and operational funding sources.
• Clarify the status and role changes of directors, particularly the resignation in January 2024 and how governance changes may impact risk.
• Confirm the company's actual trading status and employee engagement given the conflicting data of zero assets but six employees reported.
• Examine any related party transactions or loans that might not appear in micro-entity accounts but could affect financial stability.