Company Number: 13879970

Analysis Date: 2025-07-20 13:48 UTC

1. Risk Rating: HIGH
   The company exhibits negative net current assets and net liabilities as of the last two financial years, indicating solvency concerns despite being a micro-entity. The limited asset base (£1,503 current assets in 2024) relative to current liabilities (£1,867) suggests potential liquidity stress.

2. Key Concerns:

• Negative net current assets in both 2023 and 2024 imply the company may struggle to meet short-term obligations.
• Consistent small scale with minimal assets and liabilities raises questions about operational sustainability and ability to scale or absorb shocks.
• Single director and sole shareholder concentration of control could pose governance risks if oversight is limited.

3. Positive Indicators:

• Company status is active with no overdue filings, indicating compliance with statutory requirements to date.
• Stable employment of 3 staff suggests some operational continuity.
• Micro-entity filing status reduces administrative burden, which is appropriate for its size.

4. Due Diligence Notes:

• Verify the nature and timing of current liabilities to understand immediate cash flow obligations and any overdue payments.
• Investigate the company’s revenue streams and profit generation capacity, as no turnover or P&L data is provided.
• Review director’s background and any related party transactions given sole control and potential conflicts of interest.
• Confirm whether external funding or shareholder loans support liquidity given negative working capital.
• Assess any contingent liabilities or off-balance sheet risks not reflected in micro-entity accounts.