Company Number: NI672957

Analysis Date: 2025-07-20 16:39 UTC

1. Risk Rating: HIGH
   The company’s financials consistently show negative net assets (-£71) and net current liabilities (-£171), indicating it does not have sufficient short-term resources to cover immediate debts. This suggests significant solvency risk and potential liquidity concerns.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company has net current liabilities of £171 and net liabilities of £71 consistently over multiple years, which signals potential insolvency or risk of inability to meet short-term obligations.
• No Fixed Assets or Operating Activity: The balance sheet shows zero fixed assets and current assets of only £329, with no employees reported. This raises questions about ongoing operational activity and business sustainability.
• Lack of Financial Growth or Improvement: The financial position has remained stagnant over five years with no positive movement in assets or liabilities, which may indicate a dormant or non-trading status despite being active legally.

3. Positive Indicators:

• Up-to-date Compliance: The company is current with its accounts and confirmation statement filings, with no overdue returns or accounts, indicating good regulatory compliance.
• Clear Ownership and Control: The company has a single majority shareholder and director, simplifying governance and accountability.
• No Indication of Formal Insolvency Proceedings: There is no evidence of liquidation, administration, or receivership, suggesting the company is not currently under formal distress processes.

4. Due Diligence Notes:

• Verify Operational Activity: Investigate whether the company is truly trading or if it is effectively dormant despite its active status; review bank statements, contracts, or sales invoices.
• Examine Cash Flow Sources: With minimal current assets and no employees, confirm how the company finances its liabilities and ongoing expenses.
• Assess Director Intentions and Plans: Engage with directors to understand business strategy, planned capital injections, or restructuring to address negative equity.
• Review Related Party Transactions: Determine if liabilities or assets relate to intercompany or director loans that could affect solvency assessments.