Company Number: 12709201

Analysis Date: 2025-07-20 18:45 UTC

1. Risk Rating: HIGH
   The company’s financial statements show significant and persistent negative net current assets (working capital deficit) and negative net assets over multiple years, indicating solvency concerns. The liabilities substantially exceed current assets, which implies the company may struggle to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company reports current liabilities (£13,841) far exceeding current assets (£2,449), resulting in a negative working capital position (-£11,392) consistently over recent years.
• Negative Net Assets: The balance sheet shows total net liabilities of £10,392 as at 31 July 2024, worsening from prior periods, which indicates erosion of shareholders’ funds and potential insolvency risk.
• No Employees and Minimal Fixed Assets: The absence of employees and very low fixed asset base (£1,000) raises questions about operational scale and sustainability of the business model.

3. Positive Indicators:

• No Overdue Filings: The company is current with both accounts and confirmation statement filings, indicating compliance with statutory obligations.
• Single Director and PSC Consistency: The sole director is also the majority shareholder with full voting control, suggesting clear governance structure and decision-making authority.
• Micro-Entity Reporting: The company qualifies for micro-entity accounts, reducing complexity and costs of compliance.

4. Due Diligence Notes:

• Investigate the nature and timing of the company’s liabilities to assess the risk of default or creditor enforcement actions.
• Clarify the company’s cash flow position and whether it has access to external funding or financial support from the sole shareholder.
• Confirm the operational status and business activities given the absence of employees and minimal fixed assets. Determine if this is a dormant or inactive trading entity despite active status.
• Review director’s report or other disclosures for insight on going concern basis and future plans to address financial deficits.