Company Number: 12446882

Analysis Date: 2025-07-20 12:31 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in financial position over the latest financial year, moving from positive net assets of £4,749 in 2023 to negative net assets of £265 in 2024. This indicates potential solvency concerns.

2. Key Concerns:

• Negative Net Assets: The company's net assets have turned negative, suggesting liabilities now exceed total assets, raising solvency risks.
• Working Capital Deficit: Current liabilities exceed current assets by £1,793 as of 2024, indicating liquidity issues and potential difficulties meeting short-term obligations.
• Declining Current Assets: Current assets fell sharply from £8,481 in 2023 to £2,958 in 2024, a red flag for cash flow or receivables management problems.

3. Positive Indicators:

• Active Status & Compliance: The company is active, not in liquidation, and filings (accounts and confirmation statements) are up to date and not overdue, indicating regulatory compliance.
• Consistent Director: The same director has been in place since incorporation, which may suggest stability in management.
• Micro-Entity Accounting: The company benefits from simplified reporting standards, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in current assets and net assets – whether due to operational losses, write-downs, or unusual one-off items.
• Review cash flow statements and bank balances to assess liquidity beyond balance sheet snapshots.
• Assess the nature and timing of current liabilities and accruals, particularly the £1,700 in accruals and deferred income, to understand short-term payment obligations.
• Examine the company's business model viability given the SIC code 43210 (Electrical Installation) and market conditions.
• Confirm absence of any director disqualifications or adverse regulatory actions via official records.
• Validate the reported shareholder funds and any related party transactions given the sharp equity decline.