Company Number: 12563416

Analysis Date: 2025-07-20 11:04 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net current assets and net liabilities of £35,058 as of 30 April 2024, indicating an inability to cover short-term obligations. This represents a deterioration from the previous years, signaling solvency concerns.

2. Key Concerns:

• Solvency Risk: Net current liabilities increased significantly from approximately £21,000 negative in 2023 to over £35,000 negative in 2024, indicating worsening financial health and potential insolvency risk.
• Liquidity Issues: Current liabilities (£38,666) far exceed current assets (£3,608) as of the latest accounts, suggesting cash flow constraints and difficulty meeting immediate debts.
• Operational Sustainability: The company reports only one employee and minimal fixed assets, with no clear indication of revenue or profitability from the available data, implying limited operational scale and uncertain business viability.

3. Positive Indicators:

• The company is not overdue on statutory filings or accounts, indicating compliance with regulatory requirements.
• Shareholder funds have been increasing year on year until the latest accounts, implying some equity injection or capital support, although the latest accounts show net liabilities—this inconsistency requires further review.
• The sole director and controlling shareholder is consistent, suggesting stable governance structure without frequent changes.

4. Due Diligence Notes:

• Investigate the cause of the sharp increase in current liabilities and negative net assets in the latest accounts to determine if this is due to unusual or one-off items.
• Review cash flow statements or management accounts if available to assess operational cash generation and liquidity position more precisely.
• Examine any contingent liabilities, related party transactions, or off-balance sheet obligations that could exacerbate risk.
• Confirm the business model, revenue streams, and profitability outlook given the minimal fixed assets and employee count.
• Assess director’s strategy and plans to address financial distress and restore solvency.