Company Number: 13594898

Analysis Date: 2025-07-20 11:03 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns with a steep decline in net assets from £8,662 in 2022 to only £270 in 2023 and negative net current assets as of the latest filing. This financial deterioration signals a high risk that the company may struggle to meet its obligations.

2. Key Concerns:

• Liquidity Shortfall: Current liabilities (£6,389) exceed current assets (£4,540) in 2023, indicating a negative working capital position and potential cash flow difficulties.
• Erosion of Equity: The drastic decrease in shareholders' funds from £8,662 to £270 within one year signals significant losses or capital depletion.
• Limited Scale and Resources: The company is micro-sized with only one employee and minimal fixed assets (£2,119), limiting operational resilience and flexibility.

3. Positive Indicators:

• Compliance and Filing: All statutory filings, including accounts and confirmation statements, are up to date with no overdue submissions, reflecting good governance and regulatory adherence.
• Active Status: The company remains active and not under liquidation or administration, suggesting ongoing operations.
• Sole Director Involvement: The director is actively engaged and has signed off on accounts, indicating accountability.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp decline in net assets and current asset reduction—whether due to operational losses, asset disposals, or other factors.
• Review cash flow statements and recent trading performance to assess ongoing liquidity and solvency risks.
• Clarify the nature and timing of current liabilities to understand immediate payment obligations and potential creditor pressures.
• Consider the director’s background and financial commitment, as the company’s survival may depend heavily on single-person management.
• Examine any off-balance-sheet liabilities or contingent risks not captured in micro-entity accounts.