Company Number: 12923403

Analysis Date: 2025-07-19 12:24 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in financial position as of the latest financial year (2024), with net current liabilities and net negative assets. This indicates potential solvency issues and inability to meet short-term obligations.

2. Key Concerns:

• Negative net current assets of £25,903 and net liabilities of £24,771 as at 31/10/2024, reversing prior positive net assets of £121,137.
• Current liabilities remain consistent (~£30,000) but current assets have dropped sharply from £148,682 to £4,923, signaling liquidity constraints.
• No employees reported and minimal share capital (£1), which may indicate limited operational capacity or undercapitalization.

3. Positive Indicators:

• The company is up to date with statutory filings and not overdue on accounts or confirmation statements, reflecting regulatory compliance.
• The sole director and significant control holder, Stela Stefanova, has maintained continuous appointment since incorporation, suggesting stable management continuity.
• The company qualifies as a micro-entity and benefits from simplified reporting, reducing compliance burden.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decline in current assets and resultant negative working capital in 2024.
• Review cash flow statements and creditor arrangements to assess whether the company can meet its debts as they fall due.
• Understand the nature of operations given no employees and minimal share capital; clarify revenue streams and business viability.
• Confirm whether the company has access to additional financing or capital injections from the controlling shareholder or other sources.
• Ascertain any contingent liabilities or off-balance sheet exposures that may exacerbate financial risks.