Company Number: 13584642

Analysis Date: 2025-07-29 19:38 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its extremely minimal net assets, very tight working capital, and the absence of significant equity or reserves. The financial data reveals persistent near-zero shareholder funds and negligible net current assets, indicating potential solvency concerns.

2. Key Concerns:

• Minimal Net Assets and Equity: Shareholders’ funds remain at £2 across all reported years, suggesting the company is essentially operating with no tangible equity buffer. This severely limits the company’s ability to absorb losses or secure financing.
• Tight Liquidity Position: Current assets barely exceed current liabilities (£2,402 vs £2,400 in 2024), and cash balances are very low (£383), indicating limited liquidity to meet short-term obligations without relying on debtor collections.
• Unusual Debtor and Creditor Balances: The 2023 and 2022 figures show unusually large debtors and creditors (circa £1.86m and £1.87m), which effectively net out to minimal net current assets. This pattern may reflect related party transactions or intra-group balances that require further scrutiny to assess true financial health.

3. Positive Indicators:

• Up-to-date Filing and Compliance: The company is active and has no overdue filings for accounts or confirmation statements, which indicates compliance with regulatory requirements.
• Small Staff Headcount: Only two employees (including directors), suggesting a lean cost base, which may help control overheads.
• No Indication of Insolvency Proceedings: The company is not in liquidation, administration, or receivership, implying no formal insolvency process is underway.

4. Due Diligence Notes:

• Investigate the nature of the large debtor and creditor balances reported in prior years, including whether these represent related party transactions or loans.
• Clarify the company's revenue streams and profitability, as the absence of a profit and loss statement limits assessment of operational sustainability.
• Review cash flow statements or bank statements to evaluate actual liquidity and ability to meet liabilities as they fall due.
• Assess the director’s background and any potential related party relationships that may influence the company’s financial position.
• Confirm if there are any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.