Company Number: 12747693

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

1. Risk Rating: HIGH
   The company shows significant negative net assets (£-204k as of 30 Sep 2024) and net liabilities primarily due to large long-term creditors (£225k+), indicating solvency concerns and a poor equity position.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The net liabilities position has worsened from previous years, signaling erosion of equity and potential insolvency risk.
• Substantial Long-Term Creditors: Creditors falling due after more than one year exceed £225k, far above current assets, posing repayment risk.
• No Employees and Limited Operational Scale: The company reported zero employees in 2024, down from one in 2023, which may reflect operational downsizing or cessation, raising questions about business sustainability.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings or penalties, suggesting good regulatory compliance.
• Active Trading Website and VAT Registration: The company maintains an active online presence with VAT registration, indicating ongoing trading activity.
• Single Controlling Director with Industry Experience: The director is also the sole significant controller, potentially allowing for agile decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess repayment schedules and covenant risks.
• Clarify reasons behind the sharp deterioration in net assets and negative equity, including any potential write-downs or losses not fully disclosed.
• Review operational status and revenue trends, including whether the company is generating sufficient cash flow to meet liabilities.
• Confirm director’s plans or strategies to restore financial health or restructure debt.
• Assess any contingent liabilities or off-balance sheet obligations not reflected in the micro-entity accounts.