Company Number: 13554601

Analysis Date: 2025-07-20 15:37 UTC

1. Risk Rating: HIGH

Justification: The company shows net liabilities and negative shareholders’ funds that have worsened over the past two years. Current liabilities exceed current assets resulting in negative working capital, and there is zero cash reported at the year end. While directors claim ongoing group support and a going concern basis, the financial position evidences material solvency and liquidity risks.

2. Key Concerns:

• Negative net assets and shareholders’ funds increasing from £-864 (2021 & 2022) to £-3,266 (2023), indicating accumulated losses and erosion of equity.
• Net current liabilities of £3,566 (2023) and no cash balance, raising immediate liquidity and short-term payment concerns.
• Significant amounts owed to group undertakings (£131,712) and other creditors (£16,790) falling due within one year, suggesting reliance on intercompany funding that may not be sustainable or timely.

3. Positive Indicators:

• The company is current on its statutory filings with no overdue accounts or confirmation statements, reflecting regulatory compliance.
• Directors have disclosed that group companies provide financial support and expect the company to continue as a going concern, which may mitigate immediate insolvency risk.
• The company is a small entity with limited fixed assets (£400 investment), implying relatively low operational complexity.

4. Due Diligence Notes:

• Investigate the nature and terms of intercompany loans and creditor balances, including repayment schedules and any formal agreements or guarantees.
• Review cash flow forecasts and group support arrangements to ascertain the robustness of the going concern assumption.
• Assess the business model and revenue streams behind the debtor balance (£145,900) to confirm collectability and operational viability.
• Consider director backgrounds and conduct records for any governance or management concerns (none indicated here).
• Monitor future filings for any worsening financial trends or signs of distress such as overdue filings or legal actions.