Company Number: 13668788

Analysis Date: 2025-07-29 12:50 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent and significant negative net assets and net current liabilities over multiple years, indicating ongoing solvency issues. Current assets are negligible relative to current liabilities, suggesting liquidity constraints. The absence of profit and loss data and continued reliance on director funding raise concerns about operational sustainability.

2. Key Concerns:

• Solvency Weakness: Negative net assets worsening from -£16,053 in 2021 to -£21,406 in 2024, with net current liabilities similarly negative and increasing, reflect a capital deficiency and inability to cover short-term debts from current assets.
• Liquidity Constraints: Current assets dropped from £60,863 in 2021 to just £49 in 2024, while current liabilities remain high (~£21k), indicating insufficient liquid resources to meet immediate obligations.
• Operational Viability: The company has only one director who is also the controlling shareholder, with no indication of revenue generation or profit (P&L account not filed). The micro-entity filing and exemption from audit limit visibility into financial health and operational performance.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, reducing regulatory risk.
• Single Director and Shareholder: This simplifies governance and decision-making, potentially allowing rapid strategic adjustments if needed.
• No Indication of Insolvency Proceedings: The company is active and not in liquidation or administration, suggesting no immediate formal insolvency action.

4. Due Diligence Notes:

• Investigate the nature and source of liabilities causing negative net assets and current liabilities. Are these director loans, trade payables, or other debts?
• Review any off-balance-sheet commitments or contingent liabilities not disclosed in micro-entity accounts.
• Obtain or request management accounts or cash flow statements to assess operational cash generation and sustainability.
• Clarify reasons for non-filing of profit and loss account and confirm if the company is generating revenue or operating as a dormant vehicle with occasional transactions.
• Assess director’s financial support and plans for recapitalization or restructuring given recurring negative equity.