Company Number: 13147323

Analysis Date: 2025-07-20 16:15 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in its financial position over the latest year, moving from positive net assets of £100 in 2023 to net liabilities of £2,449 in 2024. This negative net current assets position indicates immediate solvency risk and potential inability to meet short-term obligations.

2. Key Concerns:

• Solvency Risk: The negative net current assets and net liabilities at the 2024 year-end reflect a weakened balance sheet and potential insolvency risk if the trend continues.
• Liquidity Concerns: Current liabilities (£3,583) exceed current assets (£1,134) by a substantial margin, suggesting cash flow issues and limited short-term liquidity.
• Operational Sustainability: The company has only one employee (the director) and minimal share capital (£100), which raises questions about operational scale and capacity to generate sustainable profits.

3. Positive Indicators:

• Compliance: The company is up to date with its statutory filings, including accounts and confirmation statements, indicating regulatory compliance and governance discipline.
• No Auditor Requirement: The micro-entity status and exemption from audit reduce administrative burdens and costs, which may be appropriate for the scale of operations.
• Active Status: The company remains active with no signs of liquidation or administration, implying ongoing business activities.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and negative working capital in the latest year—review detailed management accounts or cash flow statements if available.
• Assess the company’s revenue streams and profitability metrics since the profit and loss account has not been filed publicly.
• Confirm the director’s plans for recapitalization or restructuring to improve solvency and liquidity.
• Verify the nature of the liabilities causing current liabilities to exceed current assets and whether these are trade creditors, loans, or other obligations.
• Evaluate the business model sustainability given the very small scale of operations and limited staffing.