Company Number: 13141238

Analysis Date: 2025-07-20 16:29 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net assets and net current liabilities over multiple years, indicating solvency and liquidity challenges that raise concern about its ability to meet short-term and long-term obligations.

2. Key Concerns:

• Negative Net Assets: The company’s net assets are negative (£-94 as of 31 January 2024), reflecting accumulated losses or insufficient equity capital.
• Persistent Working Capital Deficit: Net current assets remain negative (£-1,193 in 2024), showing that current liabilities exceed current assets, which could impair the company’s capacity to settle short-term debts as they fall due.
• Minimal Share Capital and Single Director Control: Share capital is nominal (£100 issued, £1 called up but not paid), and ownership/control resides fully with one individual, increasing concentration risk and reducing financial buffer.

3. Positive Indicators:

• Timely Filings and Compliance: No overdue accounts or confirmation statements, demonstrating regulatory compliance and good governance in filings.
• Micro Entity Status: The company benefits from simplified reporting requirements, which may reduce administrative burden and costs.
• Industry Focus: Operating in tax consultancy and accounting services, which tend to have steady demand and relatively low capital intensity.

4. Due Diligence Notes:

• Investigate the company’s cash flow statements (not provided) to assess operational cash generation or reliance on external funding.
• Review any related party transactions or director loans that may be supporting the business financially.
• Assess whether there are plans or arrangements to recapitalize the company or reduce liabilities to restore solvency.
• Confirm if the negative equity position has triggered any creditor concerns or restrictions on trading.
• Evaluate the director’s track record and reputation given sole control and current financial stress.