Company Number: 13908028

Analysis Date: 2025-07-29 20:06 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position as of the latest financial year end, indicating potential solvency concerns. The rapid decline from positive net assets and net current assets in prior years to negative in the most recent year is a material red flag.

2. Key Concerns:

• Solvency risk: Net assets declined from £126 (2022) and £178 (2023) to -£119 (2024), indicating liabilities exceed assets.
• Liquidity issues: Net current assets turned negative (-£119) in 2024, suggesting insufficient short-term assets to cover current liabilities.
• Operational sustainability: No turnover reported in the latest year, whereas prior years showed minimal turnover (~£1,294), coupled with a loss of £246 in 2024, indicating lack of business activity or revenue generation.

3. Positive Indicators:

• Compliance: The company is up to date with its filings, including accounts and confirmation statements, with no overdue reports.
• Governance: The company has a single active director and clear PSC structure, reducing governance complexity.
• Micro entity status: The company remains within micro entity thresholds, which may reduce administrative burdens.

4. Due Diligence Notes:

• Investigate reasons for the absence of turnover and the operating loss in the latest year. Determine if this is due to temporary pause or fundamental business issues.
• Assess cash flow and working capital management to understand capability to meet short-term obligations given negative net current assets.
• Review director’s plans to restore solvency and operational activity or intentions regarding company continuation or potential restructuring.
• Confirm no hidden liabilities or contingent risks not reflected in accounts.
• Validate the accuracy of financial data given the low asset values and minimal activity.