Company Number: 13585903

Analysis Date: 2025-07-20 15:17 UTC

1. Risk Rating: HIGH
   The company shows a highly leveraged balance sheet with fixed assets fully matched by long-term liabilities, resulting in negligible net assets and working capital. This indicates potential solvency and liquidity challenges.

2. Key Concerns:

• Solvency Risk: The balance sheet shows fixed assets of £249,950 matched by an equal amount of long-term creditors, leaving net assets just £522, which is extremely low for the asset base and suggests high leverage.
• Liquidity Concerns: Current liabilities almost equal current assets, leaving net current assets barely positive at £522, indicating very limited short-term liquidity cushion to meet operational or unexpected cash needs.
• Operational Stability: The company has no employees and limited financial activity (micro-entity status) since incorporation in 2021, which may imply minimal ongoing operations or revenue generation.

3. Positive Indicators:

• The company is compliant with filing deadlines for both accounts and confirmation statements, indicating good regulatory adherence.
• Directors and persons with significant control are clearly identified with no disqualifications or adverse records noted.
• The fixed asset value has remained stable over the last 3 years, indicating no impairment or disposals which may suggest asset stability.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities equal to the fixed assets to understand debt servicing obligations and potential refinancing risks.
• Review the company’s cash flow statements or management accounts (if available) to assess operating cash generation and working capital management.
• Clarify the business model and revenue streams since no employees are reported and net assets are minimal despite substantial fixed assets.
• Confirm the valuation and ownership status of the fixed assets to assess potential for realization in case of financial distress.