Company Number: 12708105

Analysis Date: 2025-07-29 12:18 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with negative shareholders' funds persisting over recent years and current liabilities substantially exceeding current assets. This raises serious doubts about its ability to meet financial obligations as they fall due.

2. Key Concerns:

• Negative Equity Position: Shareholders’ funds declined from positive £6,025 in 2021 to negative £4,418 in 2024, indicating accumulated losses eroding capital.
• Working Capital Deficit: Current liabilities (£8,151) more than double current assets (£3,733) in 2024, signaling liquidity strain and potential cash flow problems.
• No Employees and Minimal Activity: Zero employees and very limited current assets suggest minimal or no operational scale, questioning business sustainability.

3. Positive Indicators:

• Current Compliance: The company is up to date with statutory filings and accounts, indicating governance compliance.
• Single Director Control: Sole director and 100% share ownership can facilitate swift decision-making and restructuring if needed.
• Micro Entity Status: Reduced filing complexity and exemptions from audit reduce administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature of liabilities and creditor terms to assess immediate financial obligations and refinancing options.
• Review management plans or forecasts addressing the persistent negative net assets and liquidity issues.
• Confirm operational status, revenue streams, and whether the company is trading, dormant, or in a restructuring phase.
• Assess director’s track record and financial support provided, if any, given sole ownership and control.