Company Number: 12807977

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

1. Risk Rating: HIGH
   The company shows a deteriorating financial position with net liabilities increasing substantially in the last reported year, indicating significant solvency risk. Negative net current assets and net assets suggest the company cannot currently meet its short-term obligations from available assets.

2. Key Concerns:

• Solvency deterioration: Net assets declined from positive £41 in 2022 to negative £5,992 in 2023, indicating accumulated losses or increased liabilities beyond asset values.
• Liquidity shortfall: Current liabilities exceed current assets by £6,814 in 2023, implying potential cash flow difficulties in meeting immediate debts.
• No employees and minimal fixed assets: Operating with zero staff and very low fixed assets may limit operational capacity and raise sustainability questions.

3. Positive Indicators:

• Timely filings: Accounts and confirmation statements are up to date with no overdue filings, indicating compliance with statutory requirements.
• Single controlling shareholder/director: Clear ownership with one director/shareholder may facilitate swift decision-making and streamlined governance.
• Micro entity status: Small scale limits reporting complexity and potential liabilities.

4. Due Diligence Notes:

• Investigate causes of increased current liabilities and negative net assets, including any unpaid creditors or contingent liabilities.
• Review cash flow statements (if available) to assess operational cash generation or reliance on external funding.
• Clarify business model viability given zero employees and the nature of activities under SIC codes including design and real estate letting.
• Confirm whether the director/shareholder has provided any financial support or guarantees.
• Assess any risks related to related party transactions or off-balance sheet obligations not disclosed.