Company Number: 12538807

Analysis Date: 2025-07-29 16:59 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net assets and net current liabilities over multiple years, with worsening financial position from 2021 through 2024. The company’s working capital is consistently negative, and cash on hand is minimal (£21 at 2024 year-end), indicating serious liquidity concerns and potential solvency risk.

2. Key Concerns:

   • Negative Equity and Net Liabilities: Shareholders’ funds declined from -£2,004 in 2021 to -£14,335 in 2024, indicating accumulated losses and insolvency on a balance sheet basis.
   • Severe Working Capital Deficit: Net current liabilities increased from -£1,904 in 2021 to -£14,335 in 2024, with current liabilities exceeding current assets by a wide margin, signaling difficulty meeting short-term obligations.
   • Very Low Cash Reserves: Cash balances have dropped from £1,584 (2021) to £21 (2024), raising red flags about the company’s ability to finance day-to-day operations and meet immediate creditor demands.

3. Positive Indicators:

   • No Overdue Filings: The company’s accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.
   • Going Concern Statement: Directors have obtained assurances from creditors that debts will not be called in within the next 12 months, supporting continuation of operations for now.
   • Stable Management Team: Three directors have been consistently in place since incorporation, suggesting stable governance in leadership roles.

4. Due Diligence Notes:

   • Examine Cash Flow and Debt Repayment Plans: Investigate detailed cash flow forecasts and creditor agreements to assess the credibility of going concern assumptions and timing of debt repayments.
   • Assess Revenue and Profitability Trends: Financial statements lack turnover and profit/loss detail; review management accounts or additional disclosures to determine operational performance and whether negative equity stems from trading losses or other factors.
   • Confirm Related Party Transactions and Financing: The notes mention no dividends paid and a controlling party owning 100% shares. Clarify whether shareholder loans or related party financing support ongoing liquidity needs.