Company Number: 13816004

Analysis Date: 2025-07-29 15:58 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net assets from £10,179 in 2022 to a negative £3,608 in 2023, indicating a loss of equity and potential solvency concerns. Current liabilities exceed current assets in 2023, resulting in negative net current assets, which raises liquidity risks.

2. Key Concerns:

• Solvency Risk: The negative net assets position as of 2023 year-end suggests the company’s liabilities exceed its assets, potentially threatening its ability to meet long-term obligations.
• Liquidity Concerns: Current liabilities (£29,833) surpass current assets (£23,010), yielding a negative working capital of £6,823. This may indicate cash flow difficulties in covering short-term debts.
• Operational Stability: The company has only one employee on average and minimal fixed assets, combined with a rapid decline in financial position within two years of incorporation, which may imply limited operational scale and resilience.

3. Positive Indicators:

• Compliance Status: Accounts and confirmation statement filings are up to date with no overdue filings, indicating good regulatory compliance and governance in terms of statutory obligations.
• Ownership and Control: Directors and persons with significant control are clearly identified and stable since incorporation, with no reported disqualifications or governance issues.
• Micro-entity Filing: As a micro-entity, the company benefits from simplified reporting requirements, which reduces administrative burdens and costs.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets from 2022 to 2023, including any extraordinary expenses, write-downs, or loss-making operations.
• Review detailed cash flow statements (if available) to assess liquidity management and timing of liabilities repayment.
• Understand the business model and revenue generation capabilities given the limited employee base and small asset base.
• Verify any contingent liabilities or off-balance sheet commitments not reflected in the micro-entity accounts.
• Confirm whether the company has access to external funding or support from shareholders to cover negative equity.