Company Number: 13029079

Analysis Date: 2025-07-20 18:55 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with large negative net current assets and creditor balances owed to directors indicating reliance on insider funding and an inability to meet short-term obligations from operational cash flows.

2. Key Concerns:

• Negative net current assets of £785,534 as of the latest financial year end suggest a liquidity shortfall and inability to cover current liabilities without additional financing.
• Creditors consist entirely of director loans (£785,534), implying the company is dependent on director funding rather than external or operating cash flows.
• The company is dormant with no employees and no reported turnover, raising questions about operational viability and sustainability over the medium term.

3. Positive Indicators:

• Compliance with filing deadlines and no overdue accounts or confirmation statements, indicating good regulatory compliance and governance practices.
• Capitalization of significant R&D expenditure as intangible assets (£795,534) suggests investment in future value creation and potential growth opportunities once these assets are commercially viable.
• Share capital increased from £1 to £10,000, indicating some shareholder commitment.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans: repayment schedules, interest, and security to assess risk of default or potential conversion to equity.
• Verify the commercial prospects and impairment status of capitalized intangible assets to assess their recoverability and impact on asset quality.
• Review business plans or pipeline for transitioning from dormant to active trading and sources of external funding or revenue generation.
• Confirm no hidden contingent liabilities or related party transactions beyond director loans that could further impair financial stability.