Company Number: OC437808

Analysis Date: 2025-07-29 13:32 UTC

1. Risk Rating: HIGH
   The company shows consistent net liabilities and negative net assets over multiple years, indicating solvency concerns. The net assets are negative (£-966 as of 31 March 2024), and current liabilities slightly exceed current assets, suggesting liquidity risks despite the small absolute amounts. The absence of turnover and profit and loss data limits assessment, but the negative equity position is a significant red flag.

2. Key Concerns:

• Persistent Negative Net Assets: The LLP’s net liabilities position indicates that liabilities exceed assets, undermining financial stability.
• Minimal Working Capital and Negative Net Current Assets: Current liabilities (~£986) exceed current assets, which raises concerns about the ability to meet short-term obligations.
• Lack of Operational Scale and Revenue Information: The average number of employees is zero, no profit and loss account filed, and minimal fixed asset investment (£20), indicating limited or no active trading activity and uncertain operational sustainability.

3. Positive Indicators:

• Compliance with Filing Obligations: The LLP has filed accounts on time and is current with confirmation statements, indicating regulatory compliance.
• Clear Ownership and Management: The LLP has designated members and persons with significant control properly registered and no director resignations linked to governance concerns.
• Small Absolute Liabilities: Creditors and accruals are under £1,000, so financial exposure is limited in scale, which somewhat mitigates risk in an investment context.

4. Due Diligence Notes:

• Investigate the nature and scale of operations: Confirm if the LLP is truly trading or dormant/holding entity given the absence of employees and profit and loss data.
• Review underlying reasons for persistent negative net assets and negative working capital: Are these related to accounting conventions, inter-member loans, or genuine operational losses?
• Clarify the investment held at £20: Understand its nature and liquidity; this is the only asset aside from current assets.
• Confirm members’ capital contributions and any off-balance-sheet liabilities or contingent obligations.
• Assess future business plans or capital injections that may improve solvency and liquidity.