Company Number: 13600359

Analysis Date: 2025-07-29 12:24 UTC

1. Risk Rating: HIGH
   The company's latest financials show a net liability position with negative net assets of £514 as of 30 September 2024, marking a deterioration from prior years where net assets were positive (£5,201 to £6,089). This indicates solvency risk as liabilities exceed assets. The absence of current assets and the presence of current liabilities suggest liquidity concerns.

2. Key Concerns:

• Negative Net Assets: The company moved from positive net assets in prior years to a net liability position in the latest fiscal year. This signals potential financial distress and inability to meet obligations.
• Zero Current Assets: As of the most recent accounts, current assets are reported as £0, indicating no cash, receivables, or inventory to cover short-term liabilities of £514. This raises serious liquidity concerns.
• No Employees and Micro Entity Status: The company has no employees and files as a micro entity, possibly indicating very limited operational activity or scale, which may impact sustainability and ability to generate revenue.

3. Positive Indicators:

• Up-to-date Filings: All statutory filings including accounts and confirmation statements are current, showing compliance with regulatory requirements.
• Recent Incorporation: Incorporated in September 2021, the company is relatively new which may suggest early-stage development with potential for turnaround or growth.
• Limited Current Liabilities: Although net assets are negative, current liabilities are relatively small (£514), which may be manageable if operations improve.

4. Due Diligence Notes:

• Investigate the reasons behind the decline in net assets and the elimination of current assets in the latest year. Are these related to operational losses, asset write-offs, or accounting adjustments?
• Review cash flow statements (if available) or bank statements to assess actual liquidity and funding sources.
• Understand the business model and revenue streams given the SIC code "Other retail sale not in stores, stalls or markets," and verify if the company is generating sustainable income.
• Evaluate director plans or recent transactions indicating potential recapitalization or restructuring.
• Confirm no undisclosed contingent liabilities or related party transactions impacting financial stability.