Company Number: 12936834

Analysis Date: 2025-07-29 17:53 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits extremely limited financial resources with minimal net assets (£28) and very low share capital (£1). Current liabilities nearly equal current assets, resulting in negligible working capital. The small cash balance and limited turnover information restrict confidence in the company’s ability to meet obligations reliably.

2. Key Concerns:

• Liquidity Risk: Cash of £1,316 versus current liabilities of £1,303 leaves an almost zero buffer; any delay in cash inflows or unexpected expenses could cause default.
• Operational Sustainability: The company is categorized under SIC 94990 (activities of other membership organisations), but no turnover or profit figures are disclosed, and average employees decreased from 4 to 3, raising questions about ongoing operational scale and viability.
• Minimal Equity and Capital Base: Share capital of £1 and shareholders funds of £28 indicate a very weak capital structure, limiting the capacity to absorb losses or invest in growth.

3. Positive Indicators:

• Timely Filing Compliance: The company has no overdue filings for accounts or confirmation statements, indicating regulatory compliance and governance awareness.
• Stable Current Assets and Liabilities: Although minimal, the current assets and liabilities have decreased but remain broadly balanced, demonstrating some consistency in short-term financial management.
• No Director or Insolvency Issues Reported: The sole director appears current with no disqualifications or negative regulatory records noted.

4. Due Diligence Notes:

• Obtain detailed turnover, profit & loss, and cash flow data to assess the underlying business performance and revenue generation capacity.
• Investigate the nature of trade debtors and creditors, especially the composition of current liabilities (taxes, wages) to gauge payment obligations and timing.
• Clarify the business model given the SIC code and minimal financial scale; determine if the company is currently active in trading or primarily dormant with limited transactions.
• Review potential related party transactions or director loans that might not be reflected in the limited financial statements.
• Confirm any contingent liabilities or off-balance sheet risks that could impact solvency.