Company Number: 12763234

Analysis Date: 2025-07-29 19:00 UTC

1. Risk Rating: HIGH
   This rating is based primarily on persistent and significant negative net assets and net current liabilities, indicating ongoing solvency and liquidity challenges.

2. Key Concerns:

• Negative Net Assets: The company has reported negative net assets every year since incorporation, with an improving but still negative position of -£4,051 as of 31 July 2024. This suggests accumulated losses or insufficient capital injection.
• Working Capital Deficit: Current liabilities exceed current assets by £3,743 in 2024, although this is an improvement from previous years. This indicates the company may struggle to meet short-term obligations without additional funding.
• Minimal Capitalization: Share capital remains nominal at £10.00, which provides limited buffer against financial shocks or operating losses.

3. Positive Indicators:

• Improving Financial Position: The reduction in net current liabilities from -£6,491 in 2023 to -£3,743 in 2024 suggests some progress in addressing liquidity pressures.
• Compliance with Filing Requirements: The company is up to date with its accounts and confirmation statement filings, indicating adherence to regulatory obligations.
• Single Director with Stability: The same director (Mr. Savill) has been in place since incorporation, suggesting continuity in management.

4. Due Diligence Notes:

• Cash Flow Analysis: Obtain detailed cash flow data or bank statements to assess if the company can sustain operations and meet liabilities in the short term.
• Revenue and Profitability Trends: Request management accounts or trading statements to understand revenue generation and cost control measures, as published financials do not provide profit and loss details.
• Funding Plans: Investigate whether the company has access to external funding, shareholder loans, or plans for capital injection to remediate the negative equity and liquidity position.
• Operational Model Viability: Review market positioning, customer base, scalability, and competitive landscape of its software product "MyHallWizard" to assess sustainability.
• Director’s Track Record: Confirm absence of disqualifications or adverse conduct records for the director to evaluate governance risk.