Company Number: 12676618

Analysis Date: 2025-07-20 17:18 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in financial position as of the latest accounts (year ending 30 June 2024), with net current liabilities of £65,429 and negative net assets of £40,594. This signals a high solvency risk and potential inability to meet short-term obligations.

2. Key Concerns:

• Severe Working Capital Deficit: The large negative net current assets suggests cash flow and liquidity challenges, which threaten operational continuity.
• Negative Shareholders’ Funds: The transition from positive equity in prior years to a material deficit represents accumulated losses or liabilities exceeding assets, raising concerns about financial viability.
• Limited Financial Transparency: The company files micro-entity accounts, exempting it from audit and detailed profit and loss disclosures, restricting comprehensive financial analysis.

3. Positive Indicators:

• Timely Filing Compliance: The company’s accounts and confirmation statements are filed on time, indicating regulatory compliance and good governance practices.
• Stable Directorship and Secretary: The same individual has held director and secretary roles since incorporation, suggesting consistent management.
• Small Operational Scale: As a micro-entity with only one employee, operational complexity is low, potentially facilitating swift management actions.

4. Due Diligence Notes:

• Investigate the causes of the deterioration in working capital and net assets between 2023 and 2024, including any unusual or one-off expenses or liabilities.
• Review cash flow statements and creditor aging (if available) to assess immediate liquidity pressures.
• Confirm existence and status of any contingent liabilities or off-balance sheet obligations not reflected in micro-entity filings.
• Assess the director’s plans to address the negative equity and ongoing business sustainability.
• Consider obtaining more detailed financial information beyond micro-entity accounts if possible, to better understand profitability and operational cash flows.