Company Number: 13478662

Analysis Date: 2025-07-29 17:08 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk given its persistent negative net assets and net current liabilities, which have worsened materially over the last financial year. The going concern note highlights reliance on director and loan provider support, indicating fragile financial stability.

2. Key Concerns:

• Negative Net Assets and Working Capital: The balance sheet shows net current liabilities of £10,499 and net assets of -£8,703 as of 30 June 2024, deteriorating from -£654 the previous year. This indicates the company is technically insolvent on a balance sheet basis.
• Lack of Operating Income and Employees: The average number of employees is nil, suggesting minimal or no operational activity, which questions sustainability of the business model.
• Dependence on Director and Loan Support: The directors have explicitly stated that the going concern assumption depends on ongoing financial support from directors and loan providers, which raises concerns about liquidity and independence.

3. Positive Indicators:

• Current Filing Status: The company is active and has no overdue filings for accounts or confirmation statements, demonstrating regulatory compliance and good standing with Companies House.
• Experienced Directors and PSCs: The company has named directors and persons with significant control who have maintained involvement since incorporation, indicating stable governance at a basic level.
• Micro Entity Reporting: The company qualifies as a micro entity and benefits from simplified reporting, reducing filing burdens in early stage or small-scale operations.

4. Due Diligence Notes:

• Investigate the nature and terms of director and loan provider financial support to assess sustainability and risk exposure.
• Review any underlying business activities or contracts to confirm operational viability given the absence of employees and worsening financial position.
• Examine cash flow statements if available to identify liquidity pressures not visible from balance sheet figures alone.
• Verify any contingent liabilities or pending obligations not disclosed in the micro-entity accounts.
• Clarify whether there are plans for recapitalization or restructuring to improve solvency.