Company Number: 13174767

Analysis Date: 2025-07-20 18:54 UTC

1. Risk Rating: MEDIUM
   The company shows stable net asset values and no current liabilities, but the absence of current assets and minimal share capital raise some concerns about short-term liquidity and operational cash flow.

2. Key Concerns:

• Absence of Current Assets: For the latest financial year ending 28/02/2024, current assets are reported as zero, implying no cash or receivables to cover operational expenses or short-term obligations.
• Declining Net Assets: Net assets have decreased from £21,779 in 2022 to £16,907 in 2024, indicating some erosion of equity which may be a sign of trading losses or asset write-downs.
• Limited Scale and Capitalization: With a micro-entity classification, only one employee and nominal share capital (£2), the company’s ability to scale or absorb financial shocks appears limited.

3. Positive Indicators:

• No Current or Long-Term Liabilities: The absence of creditors and provisions suggests no immediate solvency pressure from debt or overdue payables.
• Timely Filing and Compliance: Accounts and confirmation statements are up-to-date with no overdue filings, reflecting good regulatory compliance and governance.
• Experienced Directors with Control: The directors are also significant shareholders, potentially aligning management and ownership interests, which can be positive for decision-making and oversight.

4. Due Diligence Notes:

• Investigate the reason for zero current assets in the latest year—whether this reflects cash usage, timing of transactions, or accounting treatment.
• Review profit and loss details (not provided) to understand the cause of declining net assets and whether the business is generating operating profits or losses.
• Confirm the company’s cash flow status and ability to fund ongoing operations given the micro scale and absence of current assets.
• Assess any contingent liabilities or off-balance sheet commitments not reflected in the accounts.
• Verify the directors’ plans for future funding or business strategy to improve liquidity and operational scale.