Company Number: 13056867

Analysis Date: 2025-07-20 13:00 UTC

1. Risk Rating: MEDIUM
   The company shows a recent turnaround from a significant net liability position in 2022 to positive net assets in 2023, indicating some recovery. However, volatility in net assets and low absolute asset values suggest moderate solvency risk.

2. Key Concerns:

• Volatile Financial Position: The company reported a large net liability of £31,995 at the end of 2022, shifting to a modest net asset position (£5,408) by end 2023. This indicates operational or financial instability.
• Low Asset Base & Minimal Capital: Total net assets and shareholders’ funds are very low, with share capital of only £1.00, which may limit financial flexibility.
• No Employees and Minimal Activity: The company had zero employees during the year and operates as a micro-entity with minimal turnover (not disclosed), raising questions about operational sustainability and ongoing revenue generation.

3. Positive Indicators:

• Current Liabilities Reduced Significantly: Creditors due within one year decreased markedly from £46,951 to £1,873, improving short-term solvency and liquidity.
• No Overdue Filings: Both accounts and confirmation statements are up to date, indicating compliance with regulatory requirements.
• Director Stability: The sole director has been in place since incorporation, providing continuity in management.

4. Due Diligence Notes:

• Investigate the cause of the large net liability position in 2022 and the factors leading to the reversal in 2023, including cash flow sources and creditor settlements.
• Review the company’s business model and revenue streams given the absence of employees and minimal asset base, to assess operational sustainability.
• Verify whether there are any contingent liabilities or off-balance sheet obligations not reflected in the micro-entity accounts.
• Confirm that the company is not reliant on related party transactions or director loans which may impact financial stability.