Company Number: 12482395

Analysis Date: 2025-07-20 11:45 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistent negative net assets and increasing creditor liabilities. The financial data indicates ongoing operational losses and an inability to cover short-term obligations.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net assets have deteriorated from -£15,918 in 2020 to -£60,993 in 2024, indicating accumulated losses eroding equity.
• Liquidity Risk: Current liabilities greatly exceed current assets each year, with net current liabilities of £7,117 in 2024 and a large portion of creditors falling due after more than one year (£53,876), suggesting potential cash flow difficulties.
• Small Scale and Limited Capital: The company operates as a micro entity with only £1 share capital and one employee, limiting its financial flexibility and operational capacity.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue accounts or confirmation statements, indicating the company is up to date with statutory filings.
• Ongoing Operation: Active status since incorporation in 2020, suggesting business continuity despite financial challenges.
• No Director Disqualifications or PSC Issues: No indications of governance or regulatory compliance problems from director or control records.

4. Due Diligence Notes:

• Investigate the nature and terms of long-term liabilities (£53,876) to assess repayment obligations and creditor risk.
• Review underlying reasons for sustained losses and negative equity to determine operational viability and potential turnaround plans.
• Assess cash flow forecasts and working capital management to understand liquidity management and risk of insolvency.
• Confirm existence of any contingent liabilities or off-balance sheet risks not disclosed in the accounts.
• Examine director’s strategic plans and any external funding sources or guarantees supporting the business.