Company Number: 12835358

Analysis Date: 2025-07-20 16:38 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to persistent negative net assets, operating losses, and zero current assets, indicating an inability to meet short-term liabilities and ongoing operational challenges.

2. Key Concerns:

• Negative Net Assets & Shareholders’ Funds: The company has reported negative equity (£-33 in 2023 and £0 in 2024), which signals that liabilities exceed assets or equity is eroded, posing solvency risks.
• Operating Losses: Despite modest turnover (£58,705 in 2024), the company is consistently incurring losses (-£1,268 in 2024, -£33 in 2023). This trend suggests operational inefficiency or inadequate revenue generation relative to costs.
• Lack of Current Assets: Zero current assets in recent years means no liquid assets (cash, receivables, stock) are recorded, raising serious liquidity concerns about the company’s ability to settle short-term obligations.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s accounts and confirmation statements are up to date and not overdue, indicating adherence to regulatory filing obligations.
• Micro Entity Reporting: The company benefits from simplified reporting requirements, reducing administrative burden.
• Stable Directorship: The sole director has been in office since incorporation without changes, suggesting some stability in governance.

4. Due Diligence Notes:

• Investigate Cash Flow Management: Clarify how the company is managing liquidity given zero current assets and whether informal arrangements or off-balance sheet financing exist.
• Review Trade Payables and Creditors: The balance sheet shows minimal creditors, but verification of outstanding liabilities and supplier relationships is recommended.
• Examine Business Model Viability: Assess whether the company's service offerings and pricing structure are sustainable given ongoing losses and minimal turnover.
• Confirm No Related Party Transactions: Check for any director loans or related party funding that may not be reflected in the accounts.
• Consider Director Background: Although no adverse information is present, a check on the director’s history including any disqualifications or regulatory issues is prudent.