Company Number: 12895298

Analysis Date: 2025-07-29 15:53 UTC

1. Risk Rating: HIGH
   The company shows a deteriorating net asset position with net liabilities recorded in the latest accounts. Current liabilities exceed current assets by £5,012 against only £638 in current assets, indicating immediate liquidity stress. The trend from prior years shows a steady decline in net assets, now negative, which raises concerns about solvency.

2. Key Concerns:

• Negative Net Assets & Working Capital Deficit: The company has net liabilities of £181 as of the latest year-end, down from £424 negative the prior year, signaling ongoing financial distress.
• Limited Asset Base: No fixed assets and very low current assets indicate a lack of tangible collateral or resources to cover liabilities.
• Small Scale & Limited Staffing: Only one employee on average, with micro-entity status, suggests limited operational scale and potentially constrained revenue generation.

3. Positive Indicators:

• Current Filing Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and up-to-date statutory filings.
• Stable Management: One director remains active and involved in filings, suggesting some continuity in governance.
• Niche Industry Focus: Operating in human resources provision (SIC 78300) can offer recurring revenue potential if managed effectively.

4. Due Diligence Notes:

• Further Review of Cash Flows and Profitability: Detailed P&L data and cash flow statements would provide insight into operational sustainability beyond balance sheet snapshots.
• Examine Director & PSC Backgrounds: Both directors reside in the Isle of Man and have significant control; understanding their involvement and financial support is critical.
• Investigate Contractual Revenue Sources: Confirmation of client base, contract terms, and receivables quality would clarify future cash inflows.
• Assess Contingent Liabilities: Clarify if there are any off-balance-sheet liabilities or impending obligations contributing to the negative net assets.