Company Number: 12689432

Analysis Date: 2025-07-20 19:13 UTC

1. Risk Rating: HIGH
   The company exhibits persistent net liabilities and negative shareholders’ funds over multiple years, indicating ongoing financial distress and poor solvency position. Despite a recent slight improvement in net current assets, net liabilities remain substantial.

2. Key Concerns:

• Persistent Negative Net Assets: The company’s net liabilities have worsened from -£10 in 2023 to -£211 in 2024, showing no recovery trend in overall net worth.
• Minimal Working Capital: The company’s current assets are very low (£72 in 2024), barely covering current liabilities, which constrains liquidity and ability to meet short-term obligations.
• High Reliance on Single Director/Shareholder: One individual controls 75-100% of shares and voting rights, which concentrates governance risk and may impact operational stability and decision-making transparency.

3. Positive Indicators:

• Timely Filing Compliance: Both accounts and confirmation statement filings are up to date without overdue status, indicating regulatory compliance.
• Micro Entity Status: The company benefits from simplified accounting requirements, which reduces administrative burdens.
• Stable Incorporation and Active Status: The company is active and has remained in operation since 2020 without entering liquidation or administration.

4. Due Diligence Notes:

• Verify the nature and realization prospects of current assets (notably the £72 reported in 2024) to assess actual liquidity.
• Investigate the cause of persistent net liabilities and any plans or capital injections aimed at restoring solvency.
• Review director’s business plans and cash flow forecasts to evaluate operational sustainability given limited employee count (1) and financial strain.
• Confirm no undisclosed related party transactions or contingent liabilities affecting financial position.
• Assess the robustness of corporate governance given single-person control and potential concentration risk.