Company Number: 12718253

Analysis Date: 2025-07-20 19:16 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by a large negative net asset position (£-390,116 as of 31 Dec 2023), sharply deteriorated from positive shareholders’ funds in prior years. The negative net current assets and total assets less current liabilities indicate inability to cover short-term and overall obligations.

2. Key Concerns:

• Severe Negative Net Assets: The company moved from positive net assets (£64,741 in 2022) to a substantial deficit (£-390,116 in 2023), signaling erosion of equity and potential insolvency risk.
• Negative Working Capital: Current liabilities (£623,044) greatly exceed current assets (-£16,762), resulting in net current liabilities of £639,806, a strong liquidity red flag for meeting near-term obligations.
• Material Decline in Fixed Assets: Fixed assets dropped drastically from £2.75 million in 2022 to £249,690 in 2023, which may suggest asset disposals or write-downs impacting the company’s operational base and collateral value.

3. Positive Indicators:

• Timely Filing Compliance: There are no overdue filings for accounts or confirmation statements, indicating regulatory compliance and governance discipline.
• Stable Director Appointment: The sole director has been in place since incorporation with no reported disqualifications, suggesting consistent leadership.
• Micro-Entity Status: Small scale operation with only one employee, potentially limiting operational complexity and overhead costs.

4. Due Diligence Notes:

• Investigate reasons behind the large decrease in fixed assets and whether this relates to disposals, impairments, or restructuring.
• Review the nature and maturity of the substantial current liabilities to assess risk of default or refinancing needs.
• Examine cash flows and funding arrangements supporting working capital deficits.
• Verify any off-balance sheet liabilities or contingencies not disclosed in the micro-entity accounts.
• Clarify business model and revenue generation capability given materially negative equity and working capital.