Company Number: 12720207

Analysis Date: 2025-07-20 13:21 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net current assets and net liabilities exceeding £40,000 over multiple years, indicating an ongoing solvency risk and inability to meet short-term obligations.

2. Key Concerns:

• Solvency Risk: The balance sheet consistently reports negative net current assets (-£41,364 in 2024), meaning current liabilities far exceed current assets. This signals potential difficulty in meeting short-term debts.
• Liquidity Concerns: The very low levels of current assets (£156 in 2024) compared to significant current liabilities (~£41,500) suggest severe cash flow constraints.
• Operational Stability: The company has no employees and minimal share capital (£2.00), raising questions about the scale and sustainability of operations. The absence of significant assets or equity buffer compounds these concerns.

3. Positive Indicators:

• Compliance: The company is current on all statutory filings, including accounts and confirmation statements, with no overdue submissions reported.
• Active Status: It remains an active private limited company with no indications of liquidation or insolvency proceedings.
• Director Stability: A single director, appointed since incorporation, appears stable without disqualifications or changes.

4. Due Diligence Notes:

• Investigate the nature and origin of the substantial current liabilities and whether these are trade payables, loans, or director-related balances.
• Clarify the business model and revenue generation to assess how liabilities are being serviced despite minimal assets and cash.
• Obtain detailed cash flow statements and management accounts to understand operational cash flows and financing arrangements.
• Confirm whether the director provides financial support or if there are related party transactions not disclosed.
• Examine the risk of creditor enforcement or insolvency action given the negative working capital position.