Company Number: 13666549

Analysis Date: 2025-07-29 18:13 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and shareholders' funds for the last three years, with increasing net current liabilities and a material uncertainty noted by the director regarding going concern. These factors indicate significant solvency and liquidity challenges.

2. Key Concerns:

• Persistent negative net assets: The company’s shareholders’ funds deteriorated from -£332 in 2023 to -£512 in 2024, indicating accumulated losses and erosion of equity.
• Liquidity strain: Current liabilities exceed current assets by £412 as of 2024, with minimal cash reserves (£64), suggesting difficulty meeting short-term obligations.
• Going concern uncertainty: The director explicitly disclosed material uncertainties about the company’s ability to continue operating, which raises operational and financial stability concerns.

3. Positive Indicators:

• Compliance: The company’s accounts and confirmation statements are filed on time with no overdue filings, suggesting good regulatory compliance.
• Ownership and control: The sole director and 75-100% shareholder are clearly identified, implying clear governance structure.
• Small scale: With only one employee and modest operational scope, the company’s cost base may be limited, potentially manageable if revenue improves.

4. Due Diligence Notes:

• Review detailed cash flow statements or management accounts to assess current liquidity and operating cash generation, if available.
• Investigate the nature and cause of the losses leading to negative equity, including any write-offs or unusual expenses.
• Clarify the director’s plans or external support to address the going concern issues and return the company to profitability.
• Confirm the status and terms of the director’s account creditor balance (£476k), as this is a significant liability.
• Assess any contingent liabilities or off-balance sheet commitments that may exacerbate financial risk.