Company Number: 13803626

Analysis Date: 2025-07-29 16:38 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets and net current liabilities over multiple years, indicating solvency concerns. The very low turnover and continual losses suggest operational instability. While filings are up to date, financial metrics reveal significant liquidity and solvency risks.

2. Key Concerns:

• Negative Net Assets & Working Capital: Net current liabilities worsened from -£1,724 in 2022 to -£2,427 in 2023, with net assets equally negative, indicating inability to meet short-term obligations.
• Minimal Revenue & Losses: Turnover of only £4,150 in the latest year with a loss of £703 shows limited business activity and poor profitability.
• Reliance on Small Number of Directors/Shareholders: Two directors with overlapping 75-100% ownership each raises potential governance and control concentration risks.

3. Positive Indicators:

• Compliance: Accounts and confirmation statements are filed on time, showing good regulatory compliance.
• Simple Structure: Micro-entity status and small turnover may imply easier management and lower fixed cost base.
• No Off-Balance Sheet Liabilities: Footnotes confirm no hidden liabilities, suggesting transparency in financial reporting.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and creditor terms to assess immediate solvency threats.
• Review cash flow dynamics and funding sources given negative working capital and minimal turnover.
• Understand business model viability and growth plans given very low revenue and incurred losses.
• Assess director backgrounds and related party transactions due to ownership concentration.