Company Number: 14174582

Analysis Date: 2025-07-29 12:26 UTC

1. Risk Rating: HIGH
   The company exhibits a significant solvency risk due to negative net assets of £93,051 as of 30 June 2024, indicating liabilities exceed total assets. This is a material concern for creditors and investors.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows net liabilities of £93,051, indicating insolvency on a balance sheet basis.
• Significant Long-term Liabilities: Creditors due after more than one year total £260,037, a large obligation relative to total assets.
• No Employees and Micro Status: With zero employees and classification as a micro-entity, the company’s operational scale seems minimal, raising questions about ongoing viability and growth prospects.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: Net current assets of £83,419 suggest the company can meet short-term obligations.
• Timely Filing Compliance: Accounts and confirmation statements are filed on time, indicating good regulatory compliance and governance in terms of statutory filings.
• Increase in Shareholders’ Funds from Prior Year: Shareholders’ funds increased from negative £58,817 in 2023 to negative £93,051 in 2024, though still negative, shows some movement in equity position (note: this appears inconsistent in the data and should be clarified).

4. Due Diligence Notes:

• Verify the nature and terms of the £260,037 creditors due after more than one year, including repayment schedule, interest terms, and whether these are related party loans or third-party debt.
• Investigate the company’s cash flow and profit and loss accounts to assess whether it can generate sufficient cash to meet liabilities as they fall due despite negative net assets.
• Confirm the operational model given no employees are recorded and the company’s activity in the IT services sector, including customer base, contracts, and revenue streams.
• Clarify the apparent inconsistencies in the reported net assets and shareholders’ funds between years to ensure data accuracy.
• Assess the directors’ plans or strategies for addressing the solvency issues or plans for restructuring financing.