Company Number: 13310770

Analysis Date: 2025-07-29 19:00 UTC

1. Risk Rating: HIGH
   The company shows persistent and significant negative net current assets and shareholders’ funds over multiple years, indicating ongoing financial distress and inability to meet short-term liabilities. The pattern of operating losses and negative equity raises serious solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Current Assets: As of the 2025 financial year end, net current liabilities are £426 with a prior year figure worsening from £13,214 negative net current assets in 2024 and 2023, demonstrating ongoing liquidity strain.
• Persistent Shareholders’ Deficit: Shareholders’ funds remain deeply negative (£-426 in 2025 and £-13,214 in previous years), evidencing accumulated losses eroding the company’s capital base.
• Minimal Operational Scale: The company has only 2 employees and extremely low current asset balances (£45 in 2025), suggesting limited operational capacity and potential challenges scaling or generating positive cash flow.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and governance discipline.
• Stable Directorship and Control: The sole director and majority shareholder is consistent since incorporation, providing stable decision-making and clear accountability.
• Exemption from Audit: The company qualifies for audit exemption under micro-entity provisions, appropriate for its size and simplifying compliance burden.

4. Due Diligence Notes:

• Investigate the nature and causes of the historical and ongoing losses reflected in negative equity.
• Assess cash flow forecasts and working capital management plans to determine whether recent improvements in net current assets are sustainable.
• Review contractual obligations with creditors and any potential contingent liabilities or off-balance sheet risks.
• Obtain management commentary on business strategy, market position, and turnaround plans if any.
• Validate related party transactions or director loans that may support liquidity.
• Confirm no director disqualifications or regulatory sanctions exist beyond available records.