Company Number: 13127123

Analysis Date: 2025-07-20 11:16 UTC

1. Risk Rating: HIGH

The company exhibits a high risk profile predominantly due to persistent negative working capital (net current liabilities) and historically negative net asset values until the most recent accounting period. Despite a slight improvement in net assets to £12,546 at 31 January 2025, the company continues to have a substantial current liabilities balance (£169,504) far exceeding current assets (£4,130), indicating liquidity challenges.

2. Key Concerns:

• Liquidity Risk: The company’s current liabilities significantly exceed its current assets by approximately £165,000, indicating potential difficulty in meeting short-term obligations.
• Solvency Concerns: Negative net asset positions were reported in prior years (2023 and 2024), reflecting accumulated losses or asset write-downs, with only a marginal recovery in 2025. This raises questions about long-term financial stability.
• Operational Scale and Sustainability: The company has no employees and minimal cash reserves, suggesting limited operational activity or revenue generation capacity, which could impact ongoing viability.

3. Positive Indicators:

• Improvement in Net Assets: The company moved from negative net assets (-£6,131) in 2024 to positive (£12,546) in 2025, indicating some recovery or asset revaluation.
• Revaluation Surplus: A positive revaluation movement of £9,333 in investments reduced the revaluation reserve deficit, demonstrating potential asset value appreciation.
• Compliance with Filing Requirements: All statutory filings, including accounts and confirmation statements, are up to date with no overdue submissions, reflecting good regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and liquidity of the listed investments (£177,920 fixed assets) to assess realizable value under stress.
• Review the company's cash flow generation capabilities and funding arrangements given the persistent negative working capital.
• Clarify the business model and revenue streams since there are no employees and limited operational disclosures.
• Examine the reasons behind historical negative net assets and the recent turnaround in 2025.
• Confirm any contingent liabilities or off-balance sheet obligations that could impair financial stability.