Company Number: 13008068

Analysis Date: 2025-07-20 18:24 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, as evidenced by persistent negative net current assets and shareholders' funds, indicating an inability to meet short-term obligations from current assets.

2. Key Concerns:

• Negative Net Current Assets and Net Liabilities: Both 2022 and 2023 financial years show net current liabilities of £130 and net assets of -£130, signaling ongoing working capital deficits and overall negative equity.
• Minimal Asset Base and Capitalization: Current assets are limited to £100 (debtors), with share capital of only £100, which is minimal and insufficient for operational resilience.
• Lack of Profit Retention: A profit and loss reserve deficit of £230 suggests accumulated losses without evidence of recovery or profitability improvements.

3. Positive Indicators:

• Timely Filing Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance practices.
• Stable Management Team: Directors have been in position since incorporation with clear control and operational roles, suggesting stable leadership.
• Small Company Filing Exemption Used Appropriately: The company complies with small company reporting exemptions, reducing administrative burden.

4. Due Diligence Notes:

• Review Detailed Profit and Loss Information: As the profit and loss account is not filed with Companies House, obtaining it is essential to assess profitability trends and cash flows.
• Examine Cash Flow Statements: Determine whether the company is generating operating cash flow or relying on external financing.
• Assess Business Model Viability: Investigate the underlying business activities and revenue generation given the SIC code "Other service activities not elsewhere classified" and limited financial data.
• Confirm Directors’ Plans for Capital Injection or Restructuring: Understand if the directors have plans to address the negative net assets and ensure operational sustainability.