Company Number: 13269977

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: MEDIUM
   The company shows a marginally negative net current asset position and negative shareholders' funds as of the latest financial year, indicating limited solvency buffers. However, it remains active with no overdue filings, which mitigates immediate regulatory risk.

2. Key Concerns:

• Negative Net Current Assets and Shareholders' Funds: The company’s net current liabilities of £32 and a deficit in equity of £132 as at 31 December 2023 suggest a strained financial position and potential solvency risk.
• Reliance on Directors’ Current Accounts: Current liabilities largely consist of directors' current accounts (£68,539), which may indicate informal or short-term financing arrangements rather than stable external funding.
• Lack of Operating Activity and Employees: The company reports no employees and static debtor balances over multiple years, which may raise concerns about operational sustainability and cash flow generation.

3. Positive Indicators:

• Compliance with Regulatory Filings: Accounts and confirmation statement are up-to-date with no overdue filings, indicating good governance and regulatory compliance.
• Clear Ownership and Control: Single controlling party with 75-100% share and voting rights provides clarity in decision-making and accountability.
• Exemption from Audit: As a small entity, the company benefits from reduced compliance costs, which is appropriate given its scale.

4. Due Diligence Notes:

• Assess the nature and collectability of the £68,639 debtors balance, as it has remained unchanged for several years without apparent turnover or profit and loss data.
• Investigate the terms and sustainability of the directors' current account liabilities to understand if these are repayable or convertible and their impact on liquidity risk.
• Review any underlying business activities, contracts, or future revenue streams to evaluate operational viability despite reported static financials and absence of employees.
• Confirm the company’s strategy and plans to restore positive equity and improve working capital to mitigate solvency concerns.