Company Number: 13118279

Analysis Date: 2025-07-20 15:31 UTC

1. Risk Rating: HIGH

The company exhibits significant solvency and liquidity concerns, evidenced by persistent negative net current assets and very low equity levels. The operational stability is questionable due to no recorded employees and minimal share capital. Lack of audit requirement (micro-entity exemption) means less financial scrutiny.

2. Key Concerns:

• Negative Working Capital: Net current liabilities have consistently exceeded current assets by a large margin (£38k negative in 2023, worsening from prior years), indicating difficulty meeting short-term obligations.
• Minimal Share Capital and Equity: Shareholders’ funds remain very low (£1,986 in 2023), raising questions about the company’s ability to absorb losses or fund operations.
• No Employees: The average number of employees reported is nil for the last two years, which is unusual for a residential care business and may signal operational challenges or reliance on subcontractors/outsourcing.

3. Positive Indicators:

• Compliance with Filings: Annual accounts and confirmation statements are up to date with no overdue filings, suggesting regulatory compliance and governance awareness.
• Stable Director Structure: Six directors with varied professional backgrounds are currently appointed, which may provide governance oversight.
• Fixed Assets Base: The company holds fixed assets valued around £40k, which could indicate some operational infrastructure.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to assess urgency and risk of default.
• Clarify the absence of employees and how the business delivers residential care services operationally.
• Review cash flow statements and bank balances (not provided) to ascertain liquidity status.
• Assess related party transactions or director loans that might explain balance sheet composition.
• Examine strategic plans or funding arrangements to support ongoing solvency.