Company Number: 12770841

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

1. Risk Rating: HIGH
   The company exhibits ongoing net liabilities and negative net current assets over multiple years, indicating a distressed financial position and significant solvency risk.

2. Key Concerns:

• Persistent negative net assets: The company’s net liabilities decreased from -£16,286 in 2022 to -£6,562 in 2023 but remain negative, reflecting accumulated losses and erosion of shareholder equity.
• Negative working capital: Current liabilities (£32,902) significantly exceed current assets (£10,517) in 2023, highlighting liquidity constraints and potential difficulty meeting short-term obligations.
• Minimal share capital and small scale: With only £2 of share capital and a micro-entity classification, the company has limited financial buffer and scale to absorb losses or finance growth.

3. Positive Indicators:

• Improvement trend: The net liabilities reduced substantially from 2022 to 2023, and current assets increased, suggesting some progress in stabilizing finances.
• Steady operational footprint: The company remains active with two directors who are also PSCs, showing consistent governance and control.
• Compliance: No overdue filings or accounts; last accounts and confirmation statement filed on time.

4. Due Diligence Notes:

• Investigate the cause of persistent losses and evaluate revenue streams and cost controls.
• Review cash flow statements and debtor/creditor aging to assess liquidity management in more detail.
• Clarify any external financing arrangements or contingent liabilities not reflected on the balance sheet.
• Understand the directors’ plans to return the company to profitability or restructure.