Company Number: 13537734

Analysis Date: 2025-07-20 14:01 UTC

1. Risk Rating: HIGH
   The company exhibits a persistent net liability position with negative net assets and shareholder funds for multiple years. This financial structure indicates a solvency risk, as the company’s liabilities exceed its assets, raising concerns about its ability to meet obligations.

2. Key Concerns:

• Negative Net Assets: For at least three consecutive years, net liabilities stood at £487, indicating chronic undercapitalization.
• Dormant Status Yet Negative Equity: Despite filing dormant accounts, the company’s financial position reflects ongoing liabilities exceeding assets, suggesting unresolved financial distress.
• Minimal Current Assets and Ongoing Liabilities: Current assets are nominal (£93), while current liabilities remain significantly higher (£580), indicating liquidity challenges and potential cash flow constraints.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue accounts or confirmation statements; filings are up to date, indicating regulatory compliance and good governance in this respect.
• Single Director and PSC Alignment: The sole director and person of significant control is the same individual, simplifying accountability and decision-making processes.
• Micro-Entity Filing and Dormant Accounts: The company leverages micro-entity provisions and dormant status, which may reduce administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature and origin of the persistent liabilities causing negative net assets despite dormant status.
• Clarify whether the company has had any trading activities or financial transactions beyond nominal amounts since incorporation.
• Assess the director’s plans or strategy for resolving the negative equity and potential insolvency risks.
• Confirm if there are any undisclosed contingent liabilities or related party transactions impacting financial position.