Company Number: 12841271

Analysis Date: 2025-07-20 16:07 UTC

1. Risk Rating: HIGH
   The company exhibits a persistently negative net asset position and net current liabilities over multiple years, indicating significant solvency and liquidity concerns. The lack of fixed assets in recent years and minimal current assets further exacerbate financial instability.

2. Key Concerns:

• Negative Net Assets & Working Capital Deficit: For four consecutive years (2021-2024), net current liabilities stand at approximately £11,726 against minimal current assets (£27), reflecting inability to cover short-term obligations.
• No Reported Profit & Loss Data: Absence of profit and loss account filings limits transparency on operational performance and cash flow generation, raising concerns about sustainability.
• Micro-Entity Filing with Limited Financial Detail: As a micro entity, the company is exempt from filing detailed accounts, including profit and loss statements, which restricts investor insight into business viability and revenue streams.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with its accounts and confirmation statement filings, indicating good regulatory compliance and governance discipline.
• Stable Directorship and Ownership: Directors and persons with significant control have remained consistent since incorporation, suggesting stable management oversight.
• Micro-Entity Status: Low turnover and size reduce complexity and possibly operational overheads, which may limit risk exposure.

4. Due Diligence Notes:

• Investigate the reasons behind the persistent negative net assets and whether there is an ongoing plan to restructure or recapitalize the company.
• Request detailed management accounts or cash flow statements to assess operational cash generation and liquidity beyond statutory filings.
• Clarify the company’s revenue sources and customer base to evaluate business sustainability given the financial deficits.
• Confirm whether any related party transactions or director loans are influencing the balance sheet and liquidity position.
• Assess any contingent liabilities or off-balance sheet commitments that could further affect solvency.