Company Number: 12593029

Analysis Date: 2025-07-20 13:58 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its negative net equity position, substantial long-term liabilities relative to assets, and limited shareholder capital. These factors indicate potential solvency and liquidity challenges.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows net assets of -£150 as of May 2024, deteriorating from previous positive equity, signaling possible insolvency concerns.
• High Long-Term Creditors: Creditors falling due after one year amount to £9,000, which exceeds fixed assets and current assets combined, suggesting significant debt burden with limited asset backing.
• Low Share Capital and Reserves: Share capital is nominal at £1, and shareholders’ funds have been eroding over recent years, indicating weak capital base and limited financial buffer.

3. Positive Indicators:

• Timely Filings: The company is current on its accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Stable Director and Ownership: Single director and 100% owner (Miss Katy Michelle Blake) with no disqualifications reported, providing consistent management and control.
• Business Activity: Operating in market research, advertising, and PR sectors with a modest increase in employee count (from 1 to 2) suggests some operational activity and potential growth.

4. Due Diligence Notes:

• Verify the nature of the £9,000 creditors due after one year—terms, interest rates, and repayment schedule to assess solvency risk more accurately.
• Investigate cash flow statements or bank records (not provided) to evaluate liquidity and ability to meet short-term obligations given low current assets (£1,550).
• Clarify the reason for negative net assets and if there are any contingent liabilities or off-balance-sheet commitments impacting financial health.
• Assess revenue trends, profitability, and client contracts to understand operational sustainability beyond balance sheet snapshots.
• Confirm whether related party transactions exist, especially considering sole control by the director/shareholder.