Company Number: 13816033

Analysis Date: 2025-07-29 15:17 UTC

1. Risk Rating: HIGH
   The company exhibits a significant solvency concern demonstrated by its substantial negative net current assets and net liabilities position, which deteriorated markedly from 2022 to 2023.

2. Key Concerns:

• Solvency risk: Net current liabilities increased from approximately £46.7k in 2022 to £186.7k in 2023, with total net liabilities worsening from £47k to £187.5k. This indicates inability to cover short-term debts with current assets.
• Liquidity concerns: Current assets remain minimal at £100, while current liabilities have surged, suggesting severe cash flow constraints and potential difficulty meeting immediate obligations.
• Operational scale and sustainability: The company operates as a micro-entity with only one employee and minimal reported assets, raising questions about operational viability and revenue generation capacity to service liabilities.

3. Positive Indicators:

• Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue filings or penalties noted.
• Active status: The company is active with no liquidation or administration proceedings underway.
• Clear governance: Presence of a single named director with no public disqualifications or compliance issues.

4. Due Diligence Notes:

• Investigate the nature and cause of the large increase in current liabilities in 2023, including creditor types and payment terms.
• Review revenue and cash flow statements (not provided) to assess operational cash generation and sustainability.
• Confirm whether the company has any contingent liabilities or off-balance sheet debts contributing to financial pressure.
• Understand the business model and market position, especially given payment system operations in Armenia, to assess future viability.
• Verify whether the negative equity position has been addressed or plans exist for capital injection or restructuring.