Company Number: 13043567

Analysis Date: 2025-07-19 12:41 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by persistent negative net current assets and shareholders' funds over multiple years, indicating an inability to meet short-term obligations and an eroding equity base.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£47,959) significantly exceed its current assets (£17,084) as of 2023, resulting in a working capital deficit of £30,875, raising concerns about short-term liquidity.
• Persistent Negative Equity: Shareholders’ funds have been negative since at least 2021, standing at -£24,389 in 2023, reflecting accumulated losses and potential insolvency risk.
• Declining Operational Scale: The company employed no staff on average in 2023, down from one in 2022, suggesting possible operational contraction or reliance on directors, which may impact business sustainability.

3. Positive Indicators:

• Current Cash Balance: Despite liquidity challenges, the company held £10,482 in cash at year-end 2023, which may provide limited short-term flexibility.
• No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, indicating good regulatory adherence.
• Directors’ Stability: The same two directors have been in place since incorporation, potentially providing continuity in management.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities, particularly the “Other creditors” (£36,012), to assess payment obligations and any potential restructuring arrangements.
• Review the company’s trading performance and revenue trends to understand the cause of sustained losses and prospects for recovery.
• Clarify the business model’s sustainability given the reduction in staff and whether operations are reliant on the directors or outsourced arrangements.
• Confirm the completeness of financial disclosure, particularly profit and loss accounts, as these were not delivered to the Registrar, limiting insight into operational profitability.
• Evaluate any contingent liabilities or off-balance-sheet obligations that may exacerbate the financial risk profile.