Company Number: 13727271

Analysis Date: 2025-07-20 16:26 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, evidenced by negative shareholders' funds and current liabilities exceeding current assets by a substantial margin as of the latest financial year. The negative net equity position indicates financial distress, raising concerns about the company’s ability to meet its obligations.

2. Key Concerns:

• Negative Shareholders’ Funds: The company reported shareholders’ funds of -£83,544 as of 30 November 2023, deteriorating sharply from -£12,937 the previous year, indicating accumulated losses or liabilities exceeding assets.
• Poor Liquidity Position: Current liabilities (£208,198) significantly exceed current assets (£124,654), resulting in a negative working capital position which may impair the company's capacity to cover short-term debts.
• Zero Employees and Micro Entity Status: The company employs no staff and files as a micro-entity, suggesting limited operational scale and possible reliance on directors for all activities, which may affect operational sustainability.

3. Positive Indicators:

• Timely Filing Compliance: The company is up to date with both accounts and confirmation statement filings, indicating compliance with regulatory requirements and no immediate governance concerns.
• Stable Board and Ownership: Directors and persons with significant control have been stable since incorporation, with clear ownership structure and no evidence of director disqualifications or governance issues.
• Increasing Current Assets: Despite the negative financial position, current assets increased substantially from £7,563 in 2022 to £124,654 in 2023, which might reflect some improvement in cash or receivables.

4. Due Diligence Notes:

• Investigate the nature and maturity of current liabilities to assess any impending repayment pressures or potential defaults.
• Review detailed financial statements or management accounts for the causes of deteriorating equity and the sustainability of asset recovery.
• Assess business model viability given zero employees and micro-entity status, including potential reliance on related parties or directors for ongoing operations.
• Confirm absence of contingent liabilities or related party transactions that may affect financial stability.
• Evaluate cash flow projections and funding sources to understand how the company plans to remedy its negative net worth position.