Company Number: 12579673

Analysis Date: 2025-07-19 12:22 UTC

1. Risk Rating: MEDIUM
   The company shows extremely low net assets (£812) and working capital but remains solvent with positive net current assets. However, the sharp decline from prior years’ net assets signals potential financial stress.

2. Key Concerns:

• Diminishing Net Assets: Net assets declined from £22,717 in 2020 to £812 in 2024, indicating erosion of equity and possible ongoing losses or withdrawals.
• Minimal Share Capital: Share capital of only £1.00 may reflect limited initial funding and raises concerns about capital adequacy to support operations or absorb losses.
• Thin Liquidity Margin: Current assets slightly exceed current liabilities (£63,816 vs £63,004 in 2024), leaving a very narrow liquidity buffer, which may impair ability to meet short-term obligations if unexpected expenses arise.

3. Positive Indicators:

• Compliance and Timely Filings: All accounts and confirmation statements are filed on time with no overdue returns, reflecting good governance and regulatory compliance.
• Continuity of Director: The sole director, Mr. David Li, has been consistent since incorporation, implying stable management.
• Micro-entity Status: The company is small and benefits from simplified reporting, reducing administrative costs.

4. Due Diligence Notes:

• Profit and Loss Data: Obtain detailed P&L information to understand drivers behind declining net assets and assess operational profitability or losses over time.
• Cash Flow Statements: Review cash flow to verify liquidity beyond balance sheet snapshots and evaluate ability to sustain operations.
• Business Model and Revenue Streams: Clarify business sustainability given small scale and limited capital, including client base, contracts, and growth prospects.
• Director Background and PSC Information: Confirm whether there are any undisclosed persons with significant control or risks related to management.