Company Number: 12761435

Analysis Date: 2025-07-29 16:29 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with net liabilities worsening from -£3,780 in 2023 to -£5,223 in 2024. The existence of substantial long-term creditors (£8,813) compared to modest current assets (£3,150) indicates an inability to meet obligations without refinancing or capital injection.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company’s net liabilities have increased, signaling erosion of equity and potential insolvency.
• High Long-term Liabilities: Creditors due after more than one year stand at £8,813 against limited fixed and current assets, raising questions on debt servicing capacity.
• No Employees and Minimal Share Capital: No reported employees and nominal share capital (£1.00) may indicate limited operational scale and capital buffer.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: Positive net current assets (£3,151) suggest short-term liquidity is currently sufficient to meet immediate obligations.
• Timely Filing and Compliance: Accounts and confirmation statements are filed on time; no overdue filings or penalties noted.
• Active Status and IT Consultancy Sector: Operating in IT consultancy (SIC 62020), a sector with potential for growth and scalability.

4. Due Diligence Notes:

• Clarify the nature and terms of long-term creditors and repayment schedule to assess refinancing risk.
• Investigate recent trading performance and cash flow statements to understand operational viability and liquidity trends.
• Review directors’ plans to address negative equity and strategies to improve capital structure or profitability.
• Confirm absence of any contingent liabilities or off-balance sheet obligations.
• Verify the background and financial standing of directors, given the small scale and equity deficit.