Company Number: 13000905

Analysis Date: 2025-07-20 14:40 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency and liquidity concerns, with persistent negative net current assets and very minimal net asset value. The absence of employees and very low cash balances compound operational sustainability risks. Although compliance filings are up to date, the financial position indicates a high risk of financial distress.

2. Key Concerns:

• Negative Working Capital: The company has consistently reported net current liabilities (-£2,008 in 2023, -£2,163 in 2022), indicating it may struggle to cover short-term obligations as they fall due.

• Minimal Cash Reserves: Cash on hand is negligible (£27 in 2023), which raises concerns about liquidity and the ability to meet immediate financial commitments.

• Declining Net Assets and Equity: Net assets have deteriorated sharply from £2,803 in 2020 to only £19 in 2023, suggesting erosion of the company’s financial cushion and potential losses or write-downs.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statements are filed on time, indicating regulatory compliance and good governance in statutory obligations.

• No Employees: The absence of employees may imply low fixed costs, which could help in managing cash flow if the business model is lean or based on subcontractors.

• Tangible Assets Present: The company holds tangible fixed assets (£2,027 in 2023), which could potentially be leveraged or sold to improve liquidity.

4. Due Diligence Notes:

• Investigate Nature and Collectability of Debtors: A significant portion of current assets are debtors (£3,479 in 2023), including a large amount categorized as "other debtors" (£2,694). Clarify the composition, aging, and recoverability of these balances.

• Assess Underlying Business Model and Revenue Streams: Given the SIC code (97000 - Activities of households as employers of domestic personnel) and lack of employees, verify how the company generates revenue and its operational sustainability.

• Review Director and Control Structure: Confirm details about the sole director and controlling party (R Nowik), and assess any related-party transactions or financial support arrangements.

• Examine Tax Liabilities: Creditors include substantial taxation and social security costs (£5,369 in 2023), which may indicate unpaid or accrued liabilities requiring urgent resolution.

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