Company Number: 13129257

Analysis Date: 2025-07-20 12:51 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net current assets indicating liquidity issues, minimal shareholders’ funds, and a very low net asset base. Current liabilities consistently exceed current assets, suggesting potential difficulty in meeting short-term obligations.

2. Key Concerns:

• Liquidity Deficit: Negative net current assets of £1,032 at the latest year-end, worsening from previous years, imply ongoing cash flow constraints.
• Low Equity Base: Shareholders’ funds are very low (£23), which limits the company’s financial buffer against losses or unexpected expenses.
• Significant Corporation Tax Liability: Corporation tax creditor rose to £3,882, a substantial portion of current liabilities, which may pressure cash flows if unpaid.

3. Positive Indicators:

• Active Status with Timely Filings: The company is active and up to date on both accounts and confirmation statement filings, showing compliance with statutory requirements.
• Growing Tangible Assets: Computer equipment assets increased, suggesting investment in operational capability.
• Trade Debtors Emerged: The presence of trade debtors (£1,723) in the latest period may indicate increased business activity and receivables generation.

4. Due Diligence Notes:

• Investigate the nature and collectability of trade debtors to confirm their convertibility to cash.
• Review the causes behind the increasing corporation tax liability and assess any potential tax disputes or deferred payments.
• Examine cash flow statements and forecasts to understand how the company plans to address negative working capital.
• Confirm details on revenue generation, client contracts, and operational sustainability given the small scale of equity and financial resources.
• Assess director’s strategy and any plans for external financing or capital injection to improve solvency.