Company Number: 13550706

Analysis Date: 2025-07-20 17:45 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to persistent negative net current assets indicating liquidity strain and reliance on director loans, which undermines operational financial independence.

2. Key Concerns:

• Liquidity Deficit: The company has negative net current assets of £2,747 as of August 2023, implying it does not have sufficient short-term assets to cover current liabilities. This situation deteriorated from a prior positive net current asset figure in 2022, suggesting worsening liquidity.
• Director’s Loan Dependency: A significant portion of current liabilities (£8,173) comprises director’s loan accounts, indicating dependence on internal financing rather than external creditors or operating cash flow. This may pose a risk if the director withdraws support.
• Low Operating Scale and No Employees: The company reported no employees during the last financial year and minimal tangible fixed assets and current assets, which raises questions about the operational sustainability and scale of business activities.

3. Positive Indicators:

• Improved Net Assets: The net asset position improved substantially from £620 in 2022 to £3,066 in 2023, suggesting some retained earnings or asset management.
• Compliance with Filing: The company is current with its statutory filings, including accounts and confirmation statements, indicating regulatory compliance and governance diligence.
• Clear Ownership and Control: The company has a single director and 100% shareholder, simplifying decision-making and accountability.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account to assess repayment risk and impact on company solvency.
• Review the company’s revenue generation and cash flow statements (not provided here) to better understand operational viability and the cause of liquidity deficits.
• Clarify the company’s business model and client base under SIC 86900 (Other human health activities) to evaluate market position and growth prospects.
• Confirm if there are any contingent liabilities or pending legal issues not disclosed in the accounts.