Company Number: 12549684

Analysis Date: 2025-07-19 12:40 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net current assets and shareholders’ funds in the latest financial year, moving from a positive net current asset position of £11,414 (2023) to a negative £48,154 (2024), and shareholders’ funds from £11,414 to a deficit of £13,333. This indicates severe solvency and liquidity issues.

2. Key Concerns:

• Solvency and Liquidity Risks: The company’s current liabilities have increased dramatically to £59,730 against current assets of only £11,576, implying potential difficulty in meeting short-term obligations.
• Negative Shareholders’ Funds: A shareholders’ deficit of £13,333 suggests that liabilities exceed assets, raising concerns about financial stability and capital adequacy.
• Lack of Operational Activity/Employees: The average number of employees dropped to nil in 2024 from one in 2023, which may indicate reduced or halted business operations, threatening operational sustainability.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, indicating adherence to regulatory requirements.
• Continuity and Control: The director and persons of significant control have been consistent since incorporation, implying stable governance at the ownership level.
• Intangible Asset Investment: The addition of intangible assets (£34,821) in 2024 may represent investment in intellectual property or similar assets that could support future growth if managed effectively.

4. Due Diligence Notes:

• Investigate the reasons behind the significant increase in current liabilities and what these liabilities comprise (e.g., trade creditors, loans, or accrued expenses).
• Examine the nature and recoverability of the intangible assets recorded, including whether they represent goodwill or other capitalized costs, and assess impairment risk.
• Clarify the company’s operational status given the zero employees reported in 2024 and explore revenue generation and business model viability.
• Review cash flow statements if available to assess liquidity trends and any potential reliance on director loans or related party transactions.
• Confirm the accuracy of creditor and debtor balances since debtor figures remain unchanged at a low level (£1,726), which may signal limited sales or collection issues.