Company Number: 12760228

Analysis Date: 2025-07-29 17:30 UTC

1. Risk Rating: HIGH
   The company exhibits persistent net liabilities and negative net current assets over multiple years, indicating solvency and liquidity risks. The cumulative losses reflected in shareholders’ funds suggest financial distress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities increased from -£5,614 in 2020 to -£11,517 in 2024, reflecting ongoing accumulated losses and erosion of equity.
• Negative Working Capital Position: Current liabilities exceed current assets by £11,007 at the latest year-end, indicating potential liquidity challenges in meeting short-term obligations.
• Small Scale with Minimal Capital: Share capital is nominal (£2.00), which suggests limited financial buffer to absorb losses or fund operations.

3. Positive Indicators:

• Compliance and Filing: Accounts and confirmation statements are up to date with no overdue filings, indicating adherence to regulatory requirements.
• Stable Management: The two directors have been in place since incorporation, with no indications of disqualifications or governance issues.
• Micro-Entity Status: The business size is small, which may imply a lower operational complexity and potentially easier management of cash flows and costs.

4. Due Diligence Notes:

• Investigate Causes of Persistent Losses: Review detailed financial statements or management accounts to understand the reasons for continued negative equity and strategies to return to profitability.
• Assess Cash Flow and Funding Sources: Confirm how the business finances its working capital deficits—e.g., director loans, external financing, or supplier credit—and the sustainability of such arrangements.
• Understand Operational Viability: Clarify the business model, client base, contract pipeline, and prospects for revenue growth or cost control given the negative financial trends.
• Verify No Hidden Liabilities or Contingent Risks: Ensure there are no off-balance-sheet obligations or unresolved legal matters that could exacerbate financial risk.