Company Number: 13119189

Analysis Date: 2025-07-20 13:20 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistent and increasing negative net assets and net current liabilities, indicating an inability to meet short-term obligations.

2. Key Concerns:

• Solvency: Net assets have deteriorated from -£12,347 in 2023 to -£27,982 in 2024, reflecting accumulated losses and negative shareholder equity.
• Liquidity: Net current liabilities increased from -£12,595 to -£28,106, showing the company’s current liabilities far exceed its current assets, including cash of only £152. This suggests acute cash flow stress.
• Sustainability of Operations: Revenue recognition policy notes turnover is recognized only to the extent of recoverable expenses when contract outcomes are uncertain. Combined with low asset base and losses, this indicates potential operational difficulties in generating sustainable profits or cash flows.

3. Positive Indicators:

• The company is current on all statutory filings with no overdue accounts or confirmation statements, demonstrating compliance and governance diligence.
• Directors have maintained appointment since incorporation, suggesting stable management continuity.
• The company benefits from the small company audit exemption, reducing compliance costs.

4. Due Diligence Notes:

• Investigate the nature and maturity profile of the £28,258 current liabilities to assess risk of default or creditor pressure.
• Review detailed revenue streams and contract terms given the cautious recognition policy, to evaluate prospects for improving profitability and cash flow.
• Analyze any director or shareholder plans for recapitalization or debt restructuring given the growing deficit in net assets and working capital.
• Confirm whether any contingent liabilities or off-balance sheet obligations exist which could exacerbate solvency risks.