Company Number: 13202848

Analysis Date: 2025-07-19 12:54 UTC

1. Risk Rating: HIGH
   The company exhibits negative shareholders’ funds consistently over multiple years, worsening from a negative £4,439 in 2022 to negative £2,738 in 2025, with net current liabilities throughout the period. This indicates ongoing solvency and liquidity concerns, as current liabilities exceed current assets and the company’s net asset position remains negative.

2. Key Concerns:

• Persistent Negative Net Current Assets: The company’s current liabilities exceed current assets by £4,862 in 2025, indicating potential short-term liquidity stress.
• Negative Shareholders’ Funds: The company has been operating with a deficit in equity for multiple years, signaling accumulated losses and potential solvency issues.
• Lack of Employees and Audit Exemption: With zero employees reported and accounts prepared under micro-entity provisions exempt from audit, there may be limited operational scale and less external financial scrutiny.

3. Positive Indicators:

• Compliance with Filing Requirements: Both accounts and confirmation statements are filed on time with no overdue filings, indicating good regulatory compliance.
• Active Status with Established Directors: The company is active since 2021 and has multiple directors and a secretary in place, with no indication of disqualification or governance issues.
• Small Scale May Limit Complexity: As a micro-entity with minimal fixed assets and low share capital, financial complexity is limited which might reduce operational risks to some extent.

4. Due Diligence Notes:

• Investigate the company’s business model and revenue generation since no turnover or profit/loss data is available to assess operational sustainability.
• Clarify the nature and timing of liabilities contributing to negative net current assets and any plans for addressing liquidity shortfalls.
• Review director and shareholder intentions regarding recapitalisation or restructuring to restore positive equity.
• Confirm absence of related party transactions or contingent liabilities not disclosed in the filed accounts.
• Assess if the company has ongoing contracts or client relationships, given zero employees and negative net assets.