Company Number: 12929309

Analysis Date: 2025-07-20 12:11 UTC

1. Risk Rating: HIGH
   The company exhibits significant liquidity concerns, with cash reserves at £23 and current liabilities exceeding £1,000, resulting in negative net current assets (-£1,068) as of the latest financial year. The minimal cash position relative to liabilities indicates an inability to cover short-term obligations comfortably.

2. Key Concerns:

• Negative Working Capital: The reported net current liabilities position suggests potential cash flow difficulties to meet immediate debts.
• Minimal Cash Reserves: Cash on hand is negligible (£23), which is insufficient to manage creditors or unexpected expenses.
• No Employees and Limited Operations: The company reported zero employees, raising questions about operational capacity and sustainability of business activities.

3. Positive Indicators:

• Increasing Shareholders’ Funds: Despite the low liquidity, shareholders’ funds grew from £1 in 2022 to £212 in 2023, reflecting some accumulation of retained earnings or capital injection.
• No Overdue Filings: The company has maintained compliance with filing deadlines for accounts and confirmation statements, indicating sound governance practices regarding regulatory compliance.
• Active Status and Recent Incorporation: Being recently incorporated (2020) and active suggests the business is in early stages and not in liquidation or administration.

4. Due Diligence Notes:

• Cash Flow and Creditor Payment History: Investigate the company's cash flow management and ability to settle creditors given the negative working capital.
• Revenue Streams and Profitability: Confirm turnover figures and assess whether the company is generating sustainable revenue, as turnover is not disclosed here.
• Director’s Financial Support: Clarify if the director or shareholders are providing ongoing financial support or guarantees given the low cash balances.
• Operational Model: Understand how the company operates without employees and the extent of outsourcing or subcontracting.
• Asset Valuation: Review tangible fixed assets (£1,280 reported) to confirm realizable value and potential to support liquidity.