Company Number: 12837608

Analysis Date: 2025-07-20 15:17 UTC

1. Risk Rating: HIGH
   The company shows clear signs of financial distress, with net liabilities reported at £7,153 as of the latest accounts. The absence of current assets and negative net assets indicate solvency risks.

2. Key Concerns:

• Negative Net Assets & Shareholders’ Funds: The balance sheet reveals total net liabilities of £7,153, suggesting the company’s liabilities exceed its assets, raising solvency concerns.
• No Current Assets Reported: Zero current assets, including cash, indicate a lack of liquid resources to meet short-term liabilities or operational expenses.
• Operating Losses and Cost Structure: The company recorded a loss of £7,153 in the last financial year, with cost of materials exceeding turnover, and no staff costs reported, pointing to operational inefficiencies or unsustainable business model.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statement filings are up to date with no overdue filings, indicating adherence to statutory obligations.
• Sole Director and PSC Established: Clear ownership and control by a single director/PSC may simplify governance and decision-making processes.
• Micro-Entity Reporting: Being a micro-entity reduces the complexity of reporting, which may suit the scale of operations.

4. Due Diligence Notes:

• Investigate the nature and terms of the £7,153 creditor amount reported as “creditors falling due after more than one year,” including whether this is a loan or trade credit, and the company’s plan for repayment.
• Review detailed P&L and cash flow data beyond the summary accounts to assess operational cash flows and whether losses are expected to continue.
• Confirm the business model viability given turnover of £81,613 against costs exceeding that amount, and no fixed or current assets reported.
• Verify director’s capacity and resources to support the company financially or operationally, given the director’s stated occupation (Bar Person) and apparent lack of other staff.
• Ascertain if there are any related party transactions or off-balance sheet liabilities not disclosed.
• Check for any ongoing or potential creditor pressures or legal claims given the negative equity and lack of liquidity.