Company Number: 12816552

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, as evidenced by persistent negative net assets and net current liabilities that have worsened substantially in the latest financial year. The absence of employees and minimal current assets relative to liabilities raise concerns about operational viability.

2. Key Concerns:

• Solvency and Liquidity: Net current liabilities increased sharply from £652 in 2023 to £5,805 in 2024, with cash on hand only £708 against current liabilities of £6,514, indicating potential cash flow difficulties.
• Negative Equity: Shareholders’ funds are deeply negative (£-5,805 in 2024), suggesting accumulated losses and undercapitalization, which could impair the company’s ability to meet obligations.
• Operational Activity: The company reports no employees and minimal turnover disclosure; this raises questions about ongoing operational sustainability and revenue generation capacity.

3. Positive Indicators:

• Compliance: The company is up to date with its filing obligations for accounts and confirmation statements, indicating good regulatory compliance.
• Director Stability: The sole director has been in position since incorporation with no indication of disqualification or governance issues.
• Business Sector: Operating in IT consultancy (SIC 62020) which typically requires low fixed asset investment and can be scalable with proper management.

4. Due Diligence Notes:

• Investigate the company’s revenue generation and client contracts to evaluate whether the negative working capital is a temporary issue or structural.
• Clarify the reason for accumulated losses and whether there is a plan for recapitalization or operational turnaround.
• Review cash flow statements and bank facilities to assess liquidity management and ability to meet short-term liabilities.
• Confirm the absence of employees reflects business model rather than inactivity; review any subcontracting or outsourcing arrangements.
• Validate if the registered office at Regus and director’s residential address align with operational realities.