Company Number: 13816521

Analysis Date: 2025-07-29 20:16 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in financial position as of the latest accounts date, with net assets turning negative (-£6,991) in 2024 from positive £5,059 in 2023. The increase in creditors falling due after more than one year to £9,025 and a drastic drop in current assets from £10,600 to £2,034 suggests liquidity stress and potential solvency concerns.

2. Key Concerns:

• Negative net assets and shareholders’ funds as of 2024 year-end indicate potential insolvency risk.
• Current liabilities have increased substantially and significantly exceed current assets, signaling liquidity constraints.
• No employees reported during recent periods, which may imply limited operational activity or reliance on contractors, raising questions about sustainability.

3. Positive Indicators:

• The company is fully compliant with filing deadlines for accounts and confirmation statements, showing no regulatory compliance issues.
• Directors are clearly identified with full control and have promptly approved accounts, reflecting governance discipline.
• The company operates within the IT services sector (SIC 62090), which may offer growth opportunities if operational issues can be addressed.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£9,025) to understand repayment obligations and impact on cash flow.
• Clarify the reasons behind the sharp decline in current assets and negative net assets in 2024 compared to prior years.
• Review business model and revenue generation given zero employees and assess whether the company is operationally active or at risk of dormancy.
• Confirm if any contingent liabilities or off-balance sheet obligations exist that could further impact financial stability.
• Verify the relationship and financial transactions between the two directors/owners given their equal control stakes.