Company Number: 12508121

Analysis Date: 2025-07-29 19:50 UTC

1. Risk Rating: HIGH
   The company demonstrates consistently very low net asset values with marginal positive equity (£144 in 2024) and current liabilities exceeding current assets by a significant margin. This indicates potential solvency stress and limited financial buffer to absorb operational shocks.

2. Key Concerns:

   • Negative Working Capital: The current liabilities (£16,663 in 2024) significantly exceed current assets (£5,390), resulting in a negative net current assets position (-£11,273), which signals liquidity constraints and potential difficulties in meeting short-term obligations.
   • Minimal Share Capital and Equity Base: Share capital is only £1 and shareholders’ funds are nominal, suggesting limited capitalization and potentially insufficient resources to support growth or absorb losses.
   • Declining Fixed Assets and Overall Net Assets: Fixed assets have declined from £16,070 in 2020 to £11,417 in 2024, and net assets remain near zero throughout the years, indicating limited investment or asset base to support operations.

3. Positive Indicators:

   • Timely Filing Compliance: Accounts and confirmation statements are filed on time with no overdue filings, demonstrating good regulatory compliance and governance in this respect.
   • Stable Directorship: The sole director, Mr. Danny Roy Hollowbread, has been in place since incorporation with no disqualifications or governance issues reported.
   • Micro-Entity Reporting: The company operates within the micro-entity category, which aligns with its small scale of operations and limited complexity.

4. Due Diligence Notes:

   • Investigate the company’s cash flow statements and bank balances to assess actual liquidity and operational cash availability beyond balance sheet snapshots.
   • Review the business model and revenue streams to evaluate if current liabilities are recurring or short-term spikes, and assess sustainability of operations given the negative working capital.
   • Confirm if there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
   • Explore reasons for the name change in 2023 and whether this was linked to restructuring, rebranding, or other strategic shifts.