Company Number: 12480754

Analysis Date: 2025-07-20 16:19 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net current assets and negative net assets (shareholders' funds) over multiple years, including the latest financial year ending 2023. This indicates an ongoing insolvency position with liabilities exceeding assets, posing a significant solvency risk.

2. Key Concerns:

• Negative net current assets of £68,537 and net assets of -£9,439 in 2023, worsening from prior years, indicating liquidity and solvency stress.
• Consistently low current assets (~£1,253) against high current liabilities (~£69,790), suggesting potential cash flow difficulties to meet short-term obligations.
• Minimal share capital (£100) and only one employee, which may imply limited operational scale and potential challenges sustaining business activities.

3. Positive Indicators:

• The company remains active with no overdue filings, indicating compliance with statutory obligations.
• Increase in fixed assets from £41,098 in 2022 to £59,098 in 2023 could indicate investment in tangible assets, potentially supporting future operations.
• Presence of a director and company secretary appointed since incorporation, showing established governance structure.

4. Due Diligence Notes:

• Review detailed notes to accounts and directors’ report (not fully provided) for explanations on persistent negative net assets and plans to restore solvency.
• Assess cash flow statements and creditor aging to evaluate liquidity pressures and payment behavior.
• Investigate any contingent liabilities or off-balance sheet obligations that may exacerbate financial risk.
• Confirm nature and recoverability of fixed assets and whether they are encumbered or can be liquidated to meet liabilities.
• Verify ongoing operational viability and customer/contracts status given the micro-entity size and financial strain.