Company Number: 13499283

Analysis Date: 2025-07-29 20:03 UTC

1. Risk Rating: HIGH
   The company shows persistent net liabilities and negative shareholder funds, indicating solvency concerns. The presence of significant long-term liabilities exceeding total assets raises material risk of financial distress.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £3,885 as of 31 July 2024, worsening from previous years, signaling erosion of equity and potential insolvency risk.
• Long-Term Creditors Exceed Assets: Creditors falling due after more than one year amount to £16,500, which exceeds total assets less current liabilities (£12,615), implying an overleveraged position.
• Working Capital Deficit: Net current liabilities of £460 show the company cannot fully meet short-term obligations from current assets, posing liquidity strain.

3. Positive Indicators:

• No Filing or Compliance Issues: Accounts and confirmation statements are filed on time with no overdue notices, indicating regulatory compliance and good governance discipline.
• Ownership and Control Stability: The sole director and 75-100% shareholder is consistent since incorporation, reducing risk of governance conflicts or abrupt management changes.
• Low Operational Complexity: As a micro-entity with a single employee and specialized SIC code (Artistic creation), operations may have low fixed overheads aiding in cost control.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£16,500), including repayment schedule, covenants, and security interests.
• Clarify cash flow situation and any financing arrangements to address working capital deficits and whether the company has access to additional funding or shareholder support.
• Obtain management commentary on the persistent losses and net liability position, including business plan viability and expected turnaround strategies.
• Verify that reported fixed assets (£13,074) are accurately valued and available for operational use or collateral.
• Confirm no undisclosed contingent liabilities or pending legal actions that could exacerbate financial stress.