Company Number: 13679718

Analysis Date: 2025-07-29 20:32 UTC

1. Risk Rating: HIGH

Justification: The company exhibits very limited current assets (£850) against substantial current liabilities (£55,936) resulting in a large negative net working capital position (-£55,086). Although net assets remain positive (£2,362) due to fixed assets, the erosion from the previous year’s positive net assets (£4,336) indicates financial strain. The absence of any employees and the micro-entity size restrict operational scale and resilience. The company’s short operating history since incorporation in late 2021 also adds to uncertainty in sustainability.

2. Key Concerns:

• Liquidity risk is significant given current liabilities far exceed current assets, implying potential difficulties in meeting short-term obligations.
• Operational viability is questionable due to zero employees and minimal current assets, raising doubts about ongoing business activity and revenue generation.
• Financial stability is weak with diminishing net assets and thin equity base, which may impair the company’s ability to absorb shocks or invest in growth.

3. Positive Indicators:

• The company is compliant with filing requirements for accounts and confirmation statements, indicating good regulatory adherence.
• Fixed assets provide some tangible value on the balance sheet, which could have recoverable worth in liquidation.
• Control is clearly consolidated under a single director and shareholder, potentially allowing for streamlined decision-making.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets to assess their realizable value.
• Review cash flow statements or management accounts (not provided) to better understand liquidity management and operational cash generation.
• Clarify the business model and current trading status given zero employees and minimal current assets.
• Confirm if there are any contingent liabilities or off-balance sheet obligations.
• Examine director’s plans or intentions to improve financial health or restructure liabilities.