Company Number: 13524758

Analysis Date: 2025-07-29 12:58 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with negative net assets and negative total assets less current liabilities as of the latest financial year. The rapid deterioration from positive net assets in prior years to a negative position in 2024 suggests financial distress.

2. Key Concerns:

• Solvency Risk: Net assets dropped from £5,738 in 2023 to -£14,279 in 2024, indicating liabilities exceed assets substantially.
• Liquidity Issues: Current assets decreased sharply from £11,429 in 2023 to £491 in 2024, while current liabilities remain high at £15,015, resulting in a negative net current assets position of -£14,524. This points to potential cash flow and short-term payment difficulties.
• Operational Stability: The company reported zero employees in 2024 (down from 1 in 2023) and declining fixed assets, which may indicate a reduction in operational capacity or scale of business activity.

3. Positive Indicators:

• The company is still active and has filed accounts and confirmation statements on time, showing compliance with filing requirements.
• Sole director and 100% shareholder control by Mr. Damion Wayne Wood may allow for agile decision-making and restructuring if needed.
• Micro-entity accounting regime applied, reducing administrative burden and potentially preserving resources.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in current assets and net assets in the 2023-2024 financial year, including any unusual or one-off liabilities or write-downs.
• Review cash flow statements and creditor terms to assess ongoing liquidity management and ability to meet short-term obligations.
• Clarify the operational status, including whether business activities have contracted or ceased, given no employees and declining asset base.
• Verify any contingent liabilities or off-balance-sheet obligations that may further impact financial health.
• Assess director plans or restructuring efforts to address current financial distress.