Company Number: 12704791

Analysis Date: 2025-07-20 14:48 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets and significant long-term liabilities, indicating solvency concerns and financial distress.

2. Key Concerns:

• Negative Net Assets: The company’s net assets have deteriorated from -£1,674 in 2020 to -£14,476 in 2024, signaling accumulated losses and erosion of equity.
• High Long-Term Liabilities: Creditors due after one year amount to £182,193 as of 2024, a large obligation relative to the company’s asset base, raising solvency risk.
• Minimal Current Assets Against Current Liabilities: Current assets are only £460 (2024) with no current liabilities reported, but very limited liquid resources suggest liquidity constraints and potential cash flow issues.

3. Positive Indicators:

• Consistent Filing Compliance: The company is current with accounts and confirmation statement filings, indicating regulatory compliance.
• Stable Fixed Assets Base: Fixed assets remain around £167,000, showing some underlying asset value.
• Clear Ownership and Governance: Directors and Persons with Significant Control (PSCs) are clearly identified with no disqualifications or irregularities reported.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities (£182,193), including repayment schedules and creditor identities.
• Review cash flow statements and bank reconciliations to assess liquidity and ability to meet short-term obligations.
• Examine the company’s business model and operational viability given the ongoing losses and negative equity.
• Verify the impact of the recent director resignation (Nov 2024) on governance and management stability.
• Confirm whether any contingent liabilities or off-balance sheet risks exist.