Company Number: 12760327

Analysis Date: 2025-07-20 15:31 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in financial position over the latest reporting period, moving from positive net assets of £3,332 in 2023 to negative net assets of -£615 in 2024. The net current assets turned negative, indicating potential liquidity distress. This rapid decline in working capital and shareholders’ funds is a strong solvency concern.

2. Key Concerns:

• Negative Net Assets and Working Capital: The balance sheet at 31 July 2024 shows current liabilities (£681) exceeding current assets (£416), resulting in negative net current assets (-£265) and overall negative net assets (-£615). This signals that the company may not have sufficient short-term resources to meet obligations as they fall due.
• Sharp Decline in Financial Position: Compared to prior years, the company’s net assets and working capital have sharply deteriorated within a single year, which may indicate operational or financial difficulties.
• Minimal Share Capital and Staffing: The company has only £1 share capital and one employee (the director), which may reflect limited financial and human resource capacity to manage or turn around the business.

3. Positive Indicators:

• Timely Filing and Compliance: The company is current on its statutory filings (accounts and confirmation statement) with no overdue filings or penalties indicated.
• Active Trading Status: The company remains active and not subject to liquidation or administration, suggesting it is still operational.
• Consistent Director Presence: The sole director has remained in post since incorporation without any disqualifications or public conduct issues noted.

4. Due Diligence Notes:

• Investigate the reasons behind the significant drop in current assets and net assets in the 2024 financial year—particularly any unusual one-off expenses, loss of revenue, or increased liabilities.
• Confirm the company’s cash flow situation and plans for meeting short-term liabilities given the negative working capital position.
• Assess the business model viability and trading performance given the micro-entity scale and limited capitalization.
• Review any contingent liabilities or off-balance sheet exposures not apparent in the micro-entity accounts.
• Confirm whether the company has any external financing arrangements or shareholder support to alleviate solvency pressures.