Company Number: 13126752

Analysis Date: 2025-07-20 11:02 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistent negative net assets and shareholders' funds. Despite being current on filings, the financials reveal an ongoing loss-making operation with limited turnover and negligible cash reserves relative to liabilities.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company’s net assets have deteriorated from -£2,911 in 2024 to -£4,974 in 2025, indicating accumulated losses eroding equity and potential insolvency risk.
• High Creditors vs. Current Assets: Creditors due after more than one year increased to £8,509 against current assets of only £3,535, suggesting stretched liquidity and possible difficulties in meeting long-term obligations.
• Declining Turnover and Operating Losses: Turnover dropped sharply from £6,654 in 2024 to £2,927 in 2025, with a loss of £1,163 in 2025 after a modest profit in 2024, raising questions about operational viability and revenue generation capability.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, indicating good governance practices in regulatory compliance.
• No Staff Costs or Employee Burden: With zero employees reported, the company has minimal fixed overheads related to staffing, potentially reducing cash burn.
• Maintained Active Status: The company is active and not undergoing liquidation or administration, implying continued business operations and potential for turnaround.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£8,509) to assess risk of default or restructuring needs.
• Review cash flow statements and bank reconciliations (not provided) to determine liquidity beyond the balance sheet snapshot.
• Clarify business model viability given the low and declining turnover with ongoing losses, including market positioning and plans for revenue growth.
• Confirm absence of director or related party loans or contingent liabilities that might impact financial stability.
• Assess the impact of the negative equity position on the company’s ability to secure financing or maintain supplier relationships.