Company Number: 12789059

Analysis Date: 2025-07-20 15:47 UTC

1. Risk Rating: HIGH

Justification: The company shows negative net assets (shareholders’ funds are negative £1,136 as of 2024) and net current liabilities exceeding current assets by over £8,500. This indicates solvency concerns and potential inability to meet short-term obligations. The micro-entity status limits disclosure detail, but the financial position is weak.

2. Key Concerns:

• Negative net assets and working capital deficit suggest the company is technically insolvent.
• Current liabilities consistently exceed current assets over multiple years without improvement.
• Very limited share capital (£1) and minimal equity buffer increase financial vulnerability.

3. Positive Indicators:

• The company is up to date on filings (accounts and confirmation statement not overdue).
• Stability in fixed assets and current assets over recent years suggests some asset base.
• The company has remained active since incorporation in 2020, indicating operational continuity.

4. Due Diligence Notes:

• Investigate nature and maturity profile of current liabilities to assess immediate liquidity risks.
• Review detailed cash flow statements if available to understand operational cash generation.
• Confirm reasons for persistent negative equity—accumulated losses or accounting classification issues.
• Assess director’s plans for recapitalization or restructuring to restore solvency.
• Verify absence of any director disqualifications or regulatory issues.