Company Number: 12544754

Analysis Date: 2025-07-20 11:15 UTC

1. Risk Rating: HIGH

Justification: The company shows a significant deterioration in net assets from a positive £6,109 in 2023 to a negative £9,917 in 2024, indicating that liabilities now exceed assets. Current liabilities and longer-term creditors have increased substantially, while current assets have declined sharply. This negative net asset position suggests solvency risk and raises concerns about the company’s ability to meet its obligations.

2. Key Concerns:

• Negative Net Assets: The balance sheet at 30/09/2024 reflects net liabilities of £9,917, a marked decline from the previous year’s positive net assets, indicating potential insolvency.
• Increased Creditors: The company’s creditors falling due after more than one year increased from £11,937 in 2023 to £13,430 in 2024, highlighting growing long-term obligations.
• No Employees Reported: Zero average employees over the last two years may imply limited operational activity or potential reliance on contractors, which could impact business stability and scalability.

3. Positive Indicators:

• Compliance: The company is current with its filing obligations; no overdue accounts or confirmation statements were noted, indicating regulatory compliance.
• Active Website and Contact Information: The company maintains an active website and provides contact details, suggesting ongoing business presence.
• Established Director: A current director has been in place since incorporation, providing continuity in management.

4. Due Diligence Notes:

• Investigate the nature of the increased creditors, especially those falling due after more than one year, to assess repayment terms and risk exposure.
• Clarify the company’s business operations given the absence of employees and examine revenue streams and cash flows not visible in the micro-entity accounts.
• Review any off-balance-sheet liabilities or contingent liabilities that may further affect financial stability.
• Assess the director’s plans or strategies to restore positive net assets and ensure solvency.