Company Number: 13836792

Analysis Date: 2025-07-29 16:57 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position and net current liabilities, indicating solvency concerns. Despite being active and up to date on filings, its financial health suggests significant risk in meeting liabilities.

2. Key Concerns:

• Negative net assets of £7,699 as at 31 January 2024 and persistent net current liabilities (~£8,000), which imply the company’s liabilities exceed its assets and may struggle to meet short-term obligations.
• Reliance on director loans (£15,785) with no fixed repayment terms, indicating informal financing which may not be sustainable.
• Minimal cash balance (£1,689) relative to current liabilities (£16,715), posing liquidity constraints and potential cash flow difficulties.

3. Positive Indicators:

• The company has complied fully with filing deadlines for both accounts and confirmation statements, demonstrating good regulatory compliance and governance practices to date.
• The director maintains 100% control and is actively involved, which may support rapid decision-making and potential recapitalisation efforts if required.
• The company is a small entity with limited fixed assets and low staffing (one employee), possibly allowing operational flexibility and low overhead costs.

4. Due Diligence Notes:

• Clarify the nature and terms of the director loan(s), including whether there is any plan to formalize repayment or convert to equity.
• Investigate the company’s business plan and revenue generation capability given that profit and loss accounts are not filed and the company is reporting losses retained in reserves.
• Assess cash flow forecasts and working capital management to determine if the company can sustain operations or will require additional funding.
• Review any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Confirm the accuracy of debtor balances and the collectability of trade receivables given limited turnover information.