Company Number: 12834153

Analysis Date: 2025-07-20 14:50 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, reflected in materially negative net assets and net current assets for multiple consecutive years.

2. Key Concerns:

• Severe Negative Net Assets: The net assets have deteriorated from a positive £315 in 2021 to -£10,917 in 2024, indicating accumulated losses substantially eroding shareholder equity.
• Negative Working Capital: Current liabilities of £11,816 far exceed current assets of £857 as at 2024, resulting in a net current liability position of -£10,959, which raises serious liquidity risks.
• Director Loans as Creditors: The entire creditor balance (£11,816) is owed to directors on an undated, unsecured, interest-free basis repayable on demand, suggesting dependence on director funding and potential governance risks.

3. Positive Indicators:

• No Overdue Filings: The company is current with both accounts and confirmation statement filings, indicating compliance with statutory obligations.
• Stable Management Team: The same two directors have been in place since incorporation, potentially reflecting consistent leadership.
• No Auditor Required: As a small company, exemption from audit reduces administrative burden.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans, including any repayment plans or refinancing arrangements.
• Review the company’s cash flow forecasts and operational plans to assess whether going concern assumptions are realistic despite negative net assets and working capital deficits.
• Obtain turnover and profitability details to understand revenue trends and cost control measures, since turnover data is absent.
• Assess any contingent liabilities or off-balance sheet commitments that may exacerbate financial stress.
• Review correspondence with creditors and any ongoing negotiations or restructuring efforts.
• Confirm there are no director disqualifications or regulatory compliance issues beyond filings.