Company Number: 13122593

Analysis Date: 2025-07-20 18:37 UTC

1. Risk Rating: HIGH
   The company exhibits significant and persistent negative net assets and net current liabilities, indicating an ongoing solvency risk. The financial position deteriorated from a net liability of £-310 in 2021 to £-64,016 in 2024, with current liabilities vastly exceeding current assets. The lack of employees and minimal turnover further exacerbate concerns about operational sustainability.

2. Key Concerns:

• Solvency Risk: Net assets are deeply negative (£-64,016), with total liabilities exceeding total assets by a substantial margin, indicating that the company’s obligations far exceed its resources.
• Liquidity Issues: Current liabilities (£22,269) exceed current assets (£2,482) by a wide margin, showing a working capital deficit of £-19,787, which suggests inability to meet short-term debts as they fall due.
• Operational Stability: The company has no employees and minimal turnover (£24,306) barely covering costs, resulting in a small loss (£-492) for the year. This raises questions about the viability of ongoing business operations.

3. Positive Indicators:

• The company is up to date with all statutory filings and accounts, with no overdue returns or accounts, demonstrating regulatory compliance to date.
• The company is classified as a micro entity, which reduces reporting burden and may be appropriate for its scale.
• The director recently signing accounts indicates some level of governance and oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant long-term liabilities (£44,229) to understand creditor relationships and repayment obligations.
• Clarify business model and revenue sources given low turnover and high costs, and assess potential for increasing profitability.
• Review director and shareholder intentions regarding future funding or restructuring plans to address capital deficiency.
• Confirm no undisclosed related party transactions or contingent liabilities that could impact financial health.
• Assess market environment and competitive position within the data processing industry (SIC 63110) for sustainability prospects.