Company Number: 12840837

Analysis Date: 2025-07-20 11:36 UTC

1. Risk Rating: HIGH
   The company’s financial position has significantly deteriorated over the last year, with current assets plunging from £15,247 in 2023 to merely £358 in 2024 and correspondingly net assets reducing from £15,347 to £458. Absence of fixed assets and minimal share capital (£100) indicate very limited capital base. This steep decline suggests potential solvency risks and weak liquidity.

2. Key Concerns:

• Severe Liquidity Decline: Current assets have dropped over 97% year-on-year, raising concerns about the company’s ability to meet short-term obligations despite no current liabilities reported.
• Minimal Capitalization: Share capital of only £100 and negligible net assets limit financial resilience and ability to absorb losses or secure external financing.
• Lack of Fixed Assets and Operating Scale: No fixed assets and only two employees indicate a very small operational footprint which may struggle to generate sustainable income or scale.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, suggesting compliance with statutory requirements.
• No Current Liabilities: Absence of creditors within one year reduces immediate solvency pressure.
• Stable Director Appointments: Two directors have been in place since incorporation, indicating some continuity in leadership.

4. Due Diligence Notes:

• Verify the nature of current assets (£358)—whether cash or receivables—and confirm collectability.
• Investigate reasons behind the sharp decline in current assets from prior year. Was there a one-off event, asset disposal, or operational downturn?
• Examine cash flow statements and income trends (if available) to assess operational viability and funding sources.
• Confirm absence of contingent liabilities or overdue debts not reflected in current liabilities.
• Review contracts or client base in temporary employment agency sector (SIC 78200) to evaluate revenue stability.
• Assess director backgrounds and any related party transactions given small company size and minimal capital.