Company Number: 12447541

Analysis Date: 2025-07-29 12:09 UTC

1. Risk Rating: HIGH
   The company demonstrates a significant negative net asset position with net liabilities increasing from £7,754 in 2024 to £9,586 in 2025. Current liabilities substantially exceed current assets by a large margin, indicating solvency concerns. The minimal cash balance (£21) relative to current liabilities (£10,158) points to liquidity stress.

2. Key Concerns:

• Negative Equity and Increasing Net Liabilities: The persistent and growing shareholders' deficit reflects accumulated losses and inability to generate retained earnings, undermining solvency.
• Working Capital Deficiency: Current liabilities exceed current assets by a factor of approximately 18 times, suggesting the company lacks sufficient short-term assets to meet obligations as they fall due.
• Dependence on Director Support: The going concern statement relies on the director’s assurances to meet liabilities, indicating the business may not be self-sustaining operationally or financially without external funding or director intervention.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s annual accounts and confirmation statements are filed on time with no overdue filings or penalties noted, which reflects good regulatory compliance and governance.
• Stable Directorship and Ownership: The sole director and 100% shareholder is consistent, simplifying decision-making and control, which can be beneficial in turnaround scenarios.
• Micro-Entity Status and Small Size: The company qualifies for small company exemptions, reducing audit and reporting burdens, though this also limits the depth of available financial information.

4. Due Diligence Notes:

• Investigate Cash Flow Dynamics: Review detailed cash flow statements (not provided) to understand how the company is managing day-to-day liquidity and whether the director’s support has been consistent and sustainable.
• Assess Revenue and Profitability Trends: Obtain profit and loss account details to evaluate the root causes of sustained losses and whether there is a viable business plan to restore profitability.
• Director’s Financial Support and Plans: Verify the nature and extent of financial support from the director, including any loans or guarantees, and the strategic plans to improve financial health.