Company Number: 13118523

Analysis Date: 2025-07-20 12:15 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, as evidenced by persistent and substantial net current liabilities over the last three years, despite a slight improvement in the latest financial year. The micro-entity scale and absence of employees raise concerns regarding operational sustainability.

2. Key Concerns:

• Persistent Negative Working Capital: Net current liabilities remain very high (£-81,285 in 2024), indicating difficulty in meeting short-term obligations.
• Minimal Current Assets and Cash Resources: Current assets are minimal (£3,348), which limits liquidity and operational flexibility.
• Lack of Operational Activity: No employees reported and minimal turnover information suggests limited or no active trading, questioning business sustainability.

3. Positive Indicators:

• Improvement in Net Assets: Net assets improved from negative £2,268 in 2023 to a positive £615 in 2024, indicating some reduction in accumulated losses or liabilities.
• Compliance with Filing Requirements: Accounts and confirmation statement filings are up to date and not overdue.
• Fixed Assets Stability: Fixed assets remain consistent at £82,500, potentially providing some asset backing.

4. Due Diligence Notes:

• Clarify the nature and valuation of the fixed assets (£82,500) and assess their liquidity or potential to cover liabilities.
• Investigate the company's revenue streams, cash flow generation, and business model given the absence of employees and minimal current assets.
• Review any contingent liabilities or related party transactions not disclosed in the micro-entity accounts.
• Confirm the directors’ plans to address the negative working capital and ensure ongoing operational viability.
• Evaluate the background and financial standing of the directors given the limited scale and financial challenges.