Company Number: 12530567

Analysis Date: 2025-07-19 12:33 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risks with persistent negative net current assets and shareholders' funds. The substantial creditor balance relative to minimal current assets and recurring negative equity strongly indicate financial distress.

2. Key Concerns:

• Severe Negative Net Current Assets: The company’s current liabilities (£34,275) vastly exceed its current assets (~£3,475 in 2024), resulting in a net current liability of approximately -£30,800, indicating an inability to cover short-term obligations.
• Sustained Negative Shareholders’ Funds: Shareholders’ funds remain deeply negative (~-£30,889 in 2024), showing accumulated losses and eroded equity, which challenges the company’s financial stability.
• Related Party Loans: A large interest-free loan from a shareholder (£33,775) classified as a current liability suggests dependence on shareholder funding for liquidity, which may not be sustainable or enforceable long-term.

3. Positive Indicators:

• Up-to-Date Filing Compliance: The company is current with statutory filings (accounts and confirmation statement) with no overdue submissions, reflecting compliance with regulatory requirements.
• Low Fixed Asset Base: Minimal fixed asset investment reduces risk of impairment losses and indicates a potentially asset-light business model.
• Stable Director Structure: No director changes since incorporation and no disqualifications reported, suggesting stable governance at board level.

4. Due Diligence Notes:

• Investigate the nature and enforceability of the shareholder loan (£33,775), including repayment terms and willingness to continue supporting the company.
• Examine the company’s revenue generation and cash flow projections in light of the ongoing negative equity and working capital deficits.
• Review any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.
• Understand the company's business model under SIC code 82990 and assess sustainability given persistent losses.
• Confirm absence of director or related party conflicts or transactions that may exacerbate financial risks.