Company Number: 13936858

Analysis Date: 2025-07-29 20:52 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk as evidenced by negative net assets of £13,197 at the latest reporting date and an ongoing net current liabilities position. The absence of fixed assets and cash coupled with intra-group loan liabilities signals financial distress.

2. Key Concerns:

• Negative Net Worth: Shareholders’ funds deteriorated from -£1,151 to -£13,198 in one year, indicating accumulated losses and potential insolvency risk.
• Cash and Liquidity Deficit: Zero cash and current assets in 2023 with current liabilities of £550 suggest immediate liquidity issues to meet short-term obligations.
• Dependency on Intra-group Loan: The company carries a significant intra-group loan (£12,647) due after one year, representing a liability that may require repayment or refinancing, adding financial uncertainty.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statements are up to date with no overdue filings, reflecting regulatory compliance and governance diligence.
• Single Director with Control: The sole director owns 75-100% shares and controls the company, potentially allowing swift decision-making and operational agility.
• Micro-entity Reporting: The company benefits from simplified reporting and audit exemption, reducing administrative burdens.

4. Due Diligence Notes:

• Investigate the nature and terms of the intra-group loan—interest, repayment schedule, and the financial health of the lending entity.
• Clarify the reason for disposal of all fixed assets in 2023 and its impact on operations and asset base.
• Review cash flow forecasts and working capital management plans to understand how the company intends to meet short-term obligations with no reported cash or current assets.
• Assess any contingent liabilities or off-balance sheet exposures not evident from the accounts.
• Confirm if the company is currently trading or dormant, given the lack of assets and cash reported.