Company Number: 12779321

Analysis Date: 2025-07-29 18:12 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net assets and net liabilities of approximately £4,798 as of the latest accounts, with current liabilities of £5,000 exceeding current assets of only £202. This indicates a solvency risk and potential inability to meet short-term obligations.

2. Key Concerns:

• Negative shareholders' funds and net liabilities persisting over multiple years, suggesting ongoing financial distress.
• Current liabilities substantially exceed current assets, indicating poor liquidity and potential cash flow difficulties.
• Very low turnover (£18,831 in 2022 with no reported turnover in 2023) and minimal asset base, raising concerns about operational sustainability.

3. Positive Indicators:

• The company remains active and has no overdue filings, showing compliance with statutory requirements.
• Micro-entity reporting and exemption from audit reduce administrative burdens, which may be appropriate given company size.
• Single director with direct experience as a solicitor, aligned with the company’s principal activity, possibly ensuring focused management.

4. Due Diligence Notes:

• Investigate the nature and terms of the £5,000 creditors due after more than one year to assess potential restructuring or repayment plans.
• Clarify the absence of turnover in the most recent financial year and review business activity and revenue generation prospects.
• Review director’s plans to address the negative equity position and ensure business viability going forward.
• Confirm no contingent liabilities or off-balance sheet obligations exist that could exacerbate financial risk.