Company Number: 13711834

Analysis Date: 2025-07-20 12:51 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net current assets and shareholders’ funds over multiple years, indicating ongoing insolvency risk. The liabilities, primarily a director’s loan account, exceed current assets, and cash balances are negligible, raising concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Solvency Risk: Negative net assets and shareholders’ funds (£-181 as of 2024) reveal the company is technically insolvent on a balance sheet basis.
• Liquidity Concerns: Extremely low cash balances (£148 in 2024) combined with current liabilities of £54,221 suggest potential cash flow constraints and inability to cover immediate debts.
• Operational Stability: The absence of employees and minimal operational activity implied by the accounts (no P&L details filed, no audit, no mention of turnover) points to a lack of ongoing trading or income generation, threatening sustainability.

3. Positive Indicators:

• Compliance: The company is up to date with its statutory filings and accounts, with no overdue returns or accounts, reflecting good governance discipline.
• Control Transparency: Ownership and control are clearly documented with a single significant controller, which simplifies accountability and decision-making.
• Exemption Status: The company qualifies for small company filing exemptions, indicating it operates at a relatively low scale and has limited complexity.

4. Due Diligence Notes:

• Investigate the nature of the director’s loan account (the sole current liability) to understand repayment terms and whether it represents ongoing financial support or a risk of creditor action.
• Clarify the business model and revenue generation since there is no turnover or profit information, and the balance sheet shows large debtor amounts of £53,892 that remain constant and unexplained.
• Confirm if the company is actively trading or holds assets subject to realization, given the SIC code for real estate letting, to assess operational viability.
• Review the director’s intentions and plans for addressing the negative equity and liquidity issues, including any capital injections or restructuring proposals.