Company Number: 13171734

Analysis Date: 2025-07-20 12:03 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net current assets (working capital deficit) and negative net assets over recent years, indicating solvency and liquidity pressures. The small share capital and zero employees suggest limited operational scale and capacity to absorb financial shocks.

2. Key Concerns:

• Negative working capital: Current liabilities consistently exceed current assets by approximately £14k in 2024 and £22k in prior years, implying potential cash flow constraints to meet short-term obligations.
• Negative net assets: The balance sheet shows net liabilities of £14,461 as at 29 Feb 2024, which signals insolvency under accounting definitions and increases the risk of creditor pressure or insolvency proceedings.
• Lack of operational scale: No employees reported and minimal share capital (£2) indicate limited operational resources and possible reliance on external support or informal arrangements.

3. Positive Indicators:

• Compliance with filing: Accounts and confirmation statements are up to date with no overdue filings, showing good regulatory compliance.
• Company status active: The company remains active and not in liquidation or administration, suggesting it is currently continuing operations or at least maintaining legal standing.
• Micro-entity reporting: The company benefits from simplified reporting requirements which reduces administrative burden.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to understand if these are trade creditors, loans, or other obligations and whether payment arrangements are in place.
• Assess cash flow statements and bank statements (not provided) to evaluate liquidity beyond balance sheet snapshots.
• Clarify the business model and revenue generation given no employees and low capital to judge operational sustainability.
• Review director background and related party transactions for potential financial support or unusual arrangements.
• Confirm if there are any contingent liabilities, guarantees, or off-balance sheet exposures not reflected in the accounts.