Company Number: 13312768

Analysis Date: 2025-07-29 20:22 UTC

1. Risk Rating: MEDIUM
   The company shows modest net assets but significant current liabilities exceeding its current assets by a large margin. This mismatch indicates potential short-term liquidity strain despite positive equity.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£254,256) far exceed current assets (£12,242), resulting in a substantial working capital deficit (~£242k). This raises concerns about the company’s ability to meet short-term obligations without additional financing.
• Operational Scale and Sustainability: The company employs no staff and has minimal current assets. This, combined with its micro-entity reporting, suggests a very small or possibly non-operational business, which may limit revenue generation and operational resilience.
• Limited Financial Transparency: The absence of a profit and loss account and audited financial statements restricts insight into profitability and cash flows, making it difficult to fully assess financial health.

3. Positive Indicators:

• Growing Equity Base: Shareholders’ funds increased from £24,772 (2022) to £41,492 (2023), showing some capital growth or retained earnings improvement.
• Compliance with Filing Requirements: The company is up to date with its accounts and confirmation statement filings, indicating sound governance in regulatory compliance.
• Asset Base Stability: Fixed assets remain relatively stable (£283k+), suggesting some tangible asset backing.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities—are they trade payables, loans, or accruals? Understanding maturity and creditor relationships is critical for solvency assessment.
• Obtain management accounts or cash flow forecasts to evaluate ongoing liquidity and operational cash generation.
• Clarify business operations since no employees are reported; assess whether the company is active, dormant in trading terms, or relying on external contractors.
• Review director backgrounds and PSC information to confirm governance and control environment.
• Explore reasons behind the exclusion of profit and loss accounts and absence of audit—whether this is purely due to micro-entity status or indicative of operational issues.