Company Number: 12573225

Analysis Date: 2025-07-20 16:27 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (£-421) as of the latest accounts, indicating insolvency on a balance sheet basis. Current liabilities exceed current assets by £2,339, suggesting liquidity stress. The persistence of negative equity over recent years despite incorporation in 2020 raises concerns regarding financial sustainability.

2. Key Concerns:

• Negative net assets and working capital deficit signal potential insolvency risk.
• Lack of employees and minimal operational scale may impact business sustainability and cash flow generation.
• Share capital is nominal (£1.00), and shareholder funds have eroded from £18,708 in 2020 to a negative position, indicating capital depletion.

3. Positive Indicators:

• The company is current with filings and not overdue on accounts or confirmation statements, indicating regulatory compliance.
• The sole director and 100% shareholder is consistent, reducing governance complexity.
• The company qualifies as a micro-entity, suggesting limited operational scale and filing burden.

4. Due Diligence Notes:

• Investigate reasons for sustained negative net assets and whether the company is trading or dormant operationally.
• Review cash flow statements or management accounts to assess liquidity beyond balance sheet snapshots.
• Clarify the nature of current liabilities and whether any creditor arrangements or payment plans exist.
• Examine directors’ intentions and plans for financial recovery or restructuring.
• Confirm that there are no pending insolvency proceedings or director disqualifications beyond public records.