Company Number: 14270069

Analysis Date: 2025-07-20 18:47 UTC

1. Risk Rating: HIGH
   The company shows significant deterioration in financial position within one year, with net assets falling from £4,371 in 2023 to just £617 in 2024. Current assets have dropped to zero, indicating no liquid resources to cover immediate liabilities. The micro-entity scale and short trading history also limit confidence in operational resilience.

2. Key Concerns:

• Severe depletion of current assets from £7,120 to £0 in the latest year, raising liquidity concerns and potential cash flow issues.
• Sharp decline in net assets and shareholders’ funds, suggesting erosion of capital base and possible inability to meet obligations.
• Small size (micro entity) and limited financial history restrict ability to assess long-term operational stability and creditworthiness.

3. Positive Indicators:

• No overdue filings; accounts and confirmation statements are up to date, indicating regulatory compliance and sound governance practices.
• Single controlling shareholder/director (Xxxxxx Xxxxxxxxname shown to subscribers) with clear ownership and management structure, reducing agency risk.
• No creditors reported as current liabilities in the latest accounts, implying limited immediate debt obligations.

4. Due Diligence Notes:

• Investigate causes of the drastic reduction in current assets and net assets during the most recent financial year, including cash burn and operational expenditures.
• Review cash flow statements and management accounts if available to understand working capital management and short-term liquidity.
• Confirm no off-balance sheet liabilities or contingent risks exist that could further impact solvency.
• Assess business model sustainability and revenue generation capacity given micro-entity status and recent financial trends.
• Verify if there have been any changes in director roles or business strategy after April 2025, considering the recent resignation of one director/secretary.