Company Number: 13169904

Analysis Date: 2025-07-20 12:03 UTC

1. Risk Rating: HIGH
   The company shows signs of financial distress, with net assets turning negative in the latest financial year and a significant drop in current assets. This raises solvency and liquidity concerns.

2. Key Concerns:

• Negative net assets (£-279) in the year ending February 2025, down from positive net assets in prior years, indicating erosion of equity and potential insolvency risk.
• Sharp decline in current assets from £1,291 in 2024 to £706 in 2025, while current liabilities remain high, resulting in minimal net current assets (£36). This suggests liquidity pressures.
• No fixed assets and no employees reported, raising questions about operational capacity and sustainability of business activities.

3. Positive Indicators:

• The company is compliant with filing requirements; accounts and confirmation statements are up to date and not overdue.
• Directors appear stable, with no indication of disqualifications or governance issues.
• The company falls under the micro-entity regime, which reduces reporting complexity and costs, potentially helping cash conservation.

4. Due Diligence Notes:

• Investigate the causes behind the negative net assets and cash flow deterioration in the most recent year—e.g., extraordinary expenses, loss of revenue, or accounting adjustments.
• Assess the business model viability given absence of employees and fixed assets; confirm if the company is trading or dormant operationally.
• Confirm if there are any contingent liabilities or creditor pressures not reflected in the accounts.
• Review directors’ plans and forecasts for reversing the financial decline and restoring positive equity.
• Validate the reliability of the financials given micro-entity exemptions and the lack of audit.