Company Number: 13169052

Analysis Date: 2025-07-29 21:07 UTC

1. Risk Rating: HIGH

   The company exhibits significant solvency and liquidity risks as evidenced by its negative net assets and net current liabilities in the most recent financial year.

2. Key Concerns:

   • Negative Net Assets and Shareholders’ Funds: As of 29 February 2024, the company reports net assets of -£24,160, a material decline from £2,585 the previous year, indicating erosion of the company's equity and potential insolvency concerns.
   • Negative Net Current Assets (Working Capital Deficit): Current liabilities (£88,910) exceed current assets (£60,742) by £28,168, implying potential cash flow difficulties to meet short-term obligations.
   • Deterioration from Prior Year: Compared to the 2023 accounts, the company’s financial position has worsened considerably, with long-term creditors increasing and a reduction in fixed assets, signaling operational or financial stress.

3. Positive Indicators:

   • Filing Compliance: The company is up to date with statutory filings, including accounts and confirmation statements, suggesting good governance in terms of regulatory compliance.
   • Stable Employment: The average number of employees has remained steady at 3, indicating operational continuity.
   • Micro-entity Status: Being a micro-entity may reduce administrative burdens and reflect a smaller scale of operations potentially limiting exposure.

4. Due Diligence Notes:

   • Investigate Causes of Negative Equity: Review detailed accounts or management commentary to understand the drivers behind the net asset decline and whether this is due to operating losses, write-downs, or creditor pressure.
   • Examine Creditor Terms and Cash Flow: Assess the nature of the £88,910 current liabilities and £32,833 long-term liabilities to determine maturity profiles and risk of default.
   • Assess Director and Management Capacity: Confirm the background and experience of the sole director for capability to manage turnaround or financial recovery.
   • Review Future Trading Prospects: Given the liquidity strain, inquire about ongoing contracts, revenue pipeline, and plans to restore solvency.
   • Confirm No Undisclosed Related Party Transactions: Given the small share capital (£2) and shareholder funds deficit, investigate whether intercompany or director loans exist that may affect financial stability.

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