Company Number: 12747921

Analysis Date: 2025-07-20 13:52 UTC

1. Risk Rating: HIGH

The company shows significant solvency and liquidity concerns as of the latest financial year ending 31 July 2023. The reported net current assets and net assets are both negative (£-17,580 and £-18,580 respectively), indicating the company’s current liabilities exceed its current assets by a material margin. This suggests an inability to meet short-term obligations without additional financing. The deterioration from prior years’ positive net assets further exacerbates this risk.

2. Key Concerns:

• Negative net current assets and net assets in the latest year signal potential insolvency risk.
• Sharp decline in current assets from £17,385 in 2022 to £1,555 in 2023, while current liabilities increased, indicating liquidity stress.
• Micro-entity status with minimal share capital (£100) and only one employee implies limited operational scale and financial buffer.

3. Positive Indicators:

• The company remains active with no overdue filings or accounts, showing regulatory compliance and governance discipline.
• Shareholders’ funds were positive in prior years, indicating some historical equity base.
• Control is clearly defined between two individuals who have significant ownership and directorial control, which may facilitate swift decision-making.

4. Due Diligence Notes:

• Investigate the causes of the drastic asset reduction and liabilities increase between 2022 and 2023 — e.g., unusual expenses, write-offs, or creditor actions.
• Review cash flow statements and bank statements (not provided) to assess liquidity management and any reliance on director loans or external funding.
• Confirm whether there are any contingent liabilities or pending legal actions that could further impair financial health.
• Clarify the company’s business model and revenue generation given the micro size and industry classification (employment placement agency).
• Assess director intentions and plans to restore solvency or restructure liabilities.