Company Number: 13142149

Analysis Date: 2025-07-20 18:17 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, with persistent negative net assets and shareholders’ funds worsening from -£1,754 in 2023 to -£2,568 in 2024. Current liabilities exceed current assets, and the company has no turnover in the most recent year, indicating poor liquidity and operational challenges.

2. Key Concerns:

• Negative Equity: The company’s net liabilities have increased, reflecting accumulated losses and insufficient capital to cover debts.
• Lack of Revenue: Turnover dropped to zero in the latest financial year, signaling possible operational stagnation or halted business activities.
• High Long-Term Creditors: Creditors due after more than one year increased from £2,148 to £2,935, which may pressure future cash flows and indicate financing difficulties.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statements are up to date with no overdue filings, suggesting regulatory compliance and governance awareness.
• Micro Entity Status: The company qualifies as a micro entity, with limited complexity and reporting requirements, potentially reducing administrative burdens.
• Stable Management: The same three directors have been in place since incorporation, possibly indicating consistent leadership.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors and whether the company can service these debts.
• Clarify reasons for zero turnover in the latest year and assess whether this is temporary or indicative of business cessation.
• Request cash flow statements to evaluate liquidity and ability to meet short-term obligations given limited current assets.
• Review directors’ plans or strategies to return the company to profitability and address balance sheet deficits.