Company Number: 13586465

Analysis Date: 2025-07-20 11:54 UTC

1. Risk Rating: HIGH
   The company exhibits persistent net liabilities and negative shareholders’ funds over three consecutive years, indicating ongoing financial distress. The net current liabilities and net assets positions are negative and worsening slightly, raising significant solvency concerns for any investor.

2. Key Concerns:

• Solvency Risk: The company has negative net assets of £8,183 as of August 2023, reflecting an erosion of equity and inability to cover liabilities. This suggests the company may struggle to meet its long-term obligations.
• Liquidity Concerns: Negative net current assets of £7,884 indicate insufficient current assets to cover current liabilities, raising concerns about short-term cash flow and operational funding.
• Operational Stability: The company remains a micro-entity with only one employee (the director), and minimal asset base, which may indicate limited operational scale and resources to sustain or grow the business.

3. Positive Indicators:

• Filing Compliance: The company is up to date with its statutory filings, including accounts and confirmation statements, with no overdue filings or penalties noted.
• Active Status: The company remains active and not in liquidation or administration, suggesting ongoing efforts to maintain business operations.
• Control Transparency: There is clear disclosure of persons with significant control, demonstrating compliance with transparency regulations.

4. Due Diligence Notes:

• Investigate the company’s business model, revenue streams, and plans for financial turnaround given persistent losses and negative equity.
• Review any off-balance sheet liabilities or contingent risks not captured in the micro-entity accounts.
• Assess the director’s background and capacity to manage turnaround, including any financial support or related party transactions.
• Understand the nature of current liabilities and creditor relationships to evaluate liquidity risk.
• Confirm whether the company has external financing arrangements or reliance on director loans or shareholder support.