Company Number: 13511577

Analysis Date: 2025-07-29 17:38 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net assets and net current liabilities, indicating insolvency. Current liabilities significantly exceed current assets (only £1 in current assets versus £235,930 in current liabilities). The company’s shareholders’ funds are negative and worsening, reflecting accumulated losses or undercapitalization. These financial indicators suggest a high risk that the company cannot meet its obligations as they fall due.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company has net liabilities (£6,509) and a substantial negative working capital position (net current liabilities of £235,929), which signals potential solvency issues.
• Minimal Liquid Assets: Current assets are effectively cash of £1, which is insufficient to cover any short-term liabilities, raising liquidity risk concerns.
• Limited Financial Activity and Transparency: The company is classified as a micro-entity, with exemption from audit and no profit and loss account filed publicly, limiting insight into operational performance and sustainability.

3. Positive Indicators:

• Up-to-Date Filings: The company has complied with its filing obligations on time (accounts and confirmation statement not overdue), indicating regulatory compliance and governance discipline.
• Active Status and Registered Director: The company is active with a current director in place, which suggests ongoing management oversight.
• Fixed Asset Base: The company holds fixed assets valued at £230,140, which may represent tangible business resources or real estate holdings consistent with its SIC code (buying and selling own real estate).

4. Due Diligence Notes:

• Nature and Valuation of Fixed Assets: Investigate what constitutes the £230,140 fixed assets and their fair market value, liquidity, and whether they can be leveraged or disposed of to improve financial position.
• Cash Flow and Funding Sources: Examine cash flow statements and financing arrangements to understand how the company intends to meet its short-term liabilities and sustain operations.
• Background and Intent of New Director and PSC: Review the recent director appointment and the role of the principal shareholder (who controls 75-100% of shares) to assess strategic plans and financial support commitments.
• Operational Model and Revenue Streams: Since P&L and detailed financials are unavailable, further inquiry into revenue generation, contracts, and operational sustainability is necessary.
• Potential Related Party Transactions: Given the overlap between directors and PSCs, check for any related party transactions that may influence financial health.