Company Number: 12580984

Analysis Date: 2025-07-20 11:14 UTC

1. Risk Rating: HIGH
   The company exhibits a persistently negative net current assets position over multiple years, indicating an inability to cover short-term liabilities with current assets. The shareholders' funds are significantly negative and worsening, which raises serious concerns about solvency and financial stability.

2. Key Concerns:

• Severe Working Capital Deficiency: The net current liabilities have increased from approximately £6,000 in 2020 to nearly £42,000 in 2024, showing a consistently deteriorating liquidity position.
• Negative Shareholders’ Funds: The company is deeply insolvent on a balance sheet basis with shareholders' funds at -£41,878 as of the latest accounts, reflecting accumulated losses or creditor financing beyond equity.
• Minimal Operating Scale and Revenue Indicators: The company is classified as a micro-entity with negligible current assets (only £9 in 2024) and no apparent fixed assets or significant capital, suggesting very limited operational activity.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with both accounts and confirmation statement filings, indicating regulatory compliance and good governance in that regard.
• Active Status and Single Director: The company remains active with a single director who has been in place since incorporation and no indications of director disqualifications or governance issues.
• Micro-Entity Reporting: Utilization of micro-entity reporting reduces administrative burden, which may be appropriate given the small scale of operations.

4. Due Diligence Notes:

• Investigate the nature of the company’s liabilities and creditor composition to understand the sustainability of current obligations and any risk of enforcement action.
• Assess operational cash flows and income generation prospects since the company’s financial statements show no profitability or cash reserves.
• Clarify the business model and revenue streams in the sports education and publishing sectors, focusing on customer contracts or recurring income.
• Review any director or related party loans, guarantees, or financial support arrangements that might impact solvency.
• Confirm absence of related party transactions or contingent liabilities not reflected in the balance sheet.