Company Number: 13086699

Analysis Date: 2025-07-29 13:04 UTC

1. Risk Rating: HIGH
   Justification: The company shows extremely limited financial activity and resources, with turnover of only £2,000 and net assets of £1 as of the latest accounts. The minimal asset base and negligible working capital indicate very high solvency and liquidity risk. The absence of meaningful profit or cash generation raises significant concerns about operational sustainability.

2. Key Concerns:

• Minimal Financial Scale: Turnover of £2,000 and net assets at £1 suggest the company is not generating sufficient business activity to support ongoing operations or meet obligations.
• Liquidity Constraints: Net current assets effectively zero imply the company has virtually no liquid resources to cover short-term liabilities, risking inability to meet bills or creditor demands.
• Operational Viability: With only one employee and no substantive financial growth over multiple years, the business model may be dormant or not viable, risking long-term sustainability.

3. Positive Indicators:

• Compliance: The company is up to date with filing of accounts and confirmation statements, with no overdue submissions noted, indicating regulatory compliance.
• Clear Governance: A single director and PSC is identified with no adverse records, simplifying decision-making and accountability.
• Micro-Entity Status: The company benefits from simplified accounting and reporting requirements, which reduces administrative burden.

4. Due Diligence Notes:

• Verify the nature of the company’s business activities given the extremely low turnover and asset base. Is the company trading or effectively dormant?
• Investigate the source of financing and funding plans—how are obligations met and does the director provide financial support?
• Review any related party transactions or off-balance sheet liabilities not disclosed in the accounts.
• Confirm no director disqualifications or regulatory actions exist beyond what is publicly recorded.
• Assess potential contingent liabilities or pending legal claims that could exacerbate financial risk.