Company Number: 13575784

Analysis Date: 2025-07-20 15:28 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, with persistent net current liabilities and negative shareholders’ funds over the last three years. The absence of employees and reliance on director loans further heighten operational and financial vulnerability.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: From 2022 onwards, the company’s net assets have been negative (£-2,677 in 2024), indicating accumulated losses and erosion of equity capital.
• Liquidity Deficit: Current liabilities (£10,839) exceed current assets (cash only, £8,162 in 2024), resulting in negative net current assets (£-2,677), which raises concerns about short-term cash flow sufficiency.
• No Revenue or Staff: The accounts show zero employees and no revenue or profit figures disclosed, suggesting no operational trading activity, and the company appears dependent on director loans (£10,839) for financing.

3. Positive Indicators:

• Up-to-date Filings: The company’s accounts and confirmation statements are filed on time with no overdue filings, demonstrating regulatory compliance and governance diligence.
• Director Involvement: The principal director and majority shareholder is actively involved, which may indicate commitment to stabilizing the company.
• Exemption from Audit: As a small company, it benefits from simplified reporting requirements, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loans, including repayment plans and any related-party transaction disclosures.
• Clarify the company’s business model and revenue generation plans given zero employees and low cash balances.
• Review any recent or pending operational changes or capital injections intended to address ongoing losses.
• Confirm absence of contingent liabilities or off-balance sheet obligations that could further impair solvency.