Company Number: 13046899

Analysis Date: 2025-07-19 11:56 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets and worsening working capital position, indicating solvency concerns and financial distress risk. Operating losses in the latest year further exacerbate risk.

2. Key Concerns:

• Negative net assets deteriorated markedly from -£924 in 2022 to -£24,375 in 2023, suggesting insolvency risk.
• Cash reserves have fallen significantly from £26,004 to £8,250 despite low turnover, raising liquidity concerns.
• Operating loss of £6,651 in 2023 following a prior profitable year implies declining operational performance and sustainability issues.

3. Positive Indicators:

• Company remains active and up to date with statutory filings, reducing regulatory compliance risk.
• Single director with consistent appointment and no reported disqualifications or governance issues.
• Small scale and limited employee count (1 employee) may allow for lean operations and cost control.

4. Due Diligence Notes:

• Investigate causes for sharp decline in net assets and cash drain, including creditor composition and payment terms.
• Review management plans for returning to profitability or restructuring liabilities.
• Confirm nature and collectability of receivables (if any) and status of other creditors totaling £32,625.
• Assess any off-balance sheet liabilities or contingent risks not reflected in accounts.
• Clarify business model viability given turnover decline and operating losses.