Company Number: 13885018

Analysis Date: 2025-07-29 20:32 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net current assets and shareholders' funds over multiple years, indicating ongoing solvency concerns. The reliance on director loans to finance operations further heightens financial risk and questions liquidity.

2. Key Concerns:

• Negative Equity and Working Capital: The company’s net assets and shareholders’ funds have been negative since incorporation, worsening from -£536 in 2022 to -£2,010 in 2025, implying that liabilities consistently exceed assets.
• Liquidity Constraints: Cash balances remain very low (only £6,150 at year-end 2025) against current liabilities of £8,160, reflecting a working capital deficit and possible cash flow difficulties.
• Dependence on Director Loans: All current liabilities (£8,160 in 2025) are loans from the director, indicating the company lacks external financing and relies heavily on the director for short-term funding, which may not be sustainable.

3. Positive Indicators:

• Compliance with Filing and Regulatory Requirements: The company is current with its accounts and confirmation statement filings, with no overdue submissions or audit requirements due to its small company status.
• Single Director Control with Clear PSC: The sole director, Mr. Romans Demko, also the 75-100% shareholder and PSC, suggests straightforward governance and decision-making processes.
• Consistent Accounting Policies and Small Company Reporting: The accounts comply with FRS 102 Section 1A and small company provisions, reducing complexity and potential reporting risks.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans to assess the risk of withdrawal or demand for repayment.
• Review business plans or forecasts to evaluate how the company intends to restore positive equity and improve cash flow.
• Confirm if there are any contingent liabilities or off-balance-sheet risks not disclosed in the accounts.
• Assess the operational model and revenue streams given the SIC codes (retail via internet and other service activities) for sustainability and growth potential.
• Verify the physical location details as the registered office differs slightly between the overview and accounts document (Unit 10 vs. Unit 3 Swann Street), which may indicate administrative inconsistencies.