Company Number: 12571474

Analysis Date: 2025-07-29 20:40 UTC

1. Risk Rating: HIGH
   The company exhibits significant and persistent negative net assets and net current liabilities, indicating a high risk of insolvency. The magnitude of liabilities exceeding assets by around £39,500 as of the latest accounts, combined with minimal current assets (£504), raises serious concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets & Working Capital Deficiency: The company has maintained negative net assets for several years, deteriorating from -£7,745 in 2020 to -£39,522 in 2024. This signals ongoing losses or liabilities not matched by assets.
• Liquidity Constraints: Current liabilities (£42,311) vastly exceed current assets (£504), resulting in a net current liability position of approximately -£41,807, which suggests the company may struggle to cover immediate debts or operational costs.
• Lack of Operational Activity and Employees: The average number of employees dropped to zero in the latest year, and the company’s main activity is management consultancy with no reported trading profit or turnover disclosed, implying limited or no substantive business operations supporting financial sustainability.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s accounts and confirmation statements are up to date with no overdue filings, indicating compliance with regulatory obligations.
• Clear Ownership and Control: A single individual, Mr Mark Laszlo Molnar, owns 75-100% of shares and voting rights and serves as director and secretary, which could facilitate streamlined decision-making.
• Micro Entity Status: The company benefits from simplified reporting requirements under the micro-entity regime, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature and origin of the significant current liabilities to assess whether these are trade payables, loans, or other obligations and the likelihood of repayment or restructuring.
• Review any related party transactions or director loans that may impact the financial position or risk profile.
• Assess the company’s business plan or future prospects, including any planned capital injections or operational changes intended to restore financial health.
• Confirm whether the company has been trading actively during the year or if it functions mainly as a holding or dormant entity despite active status.
• Evaluate the director’s capacity and intentions regarding ongoing support or restructuring given the persistent financial deficits.