Company Number: 12576059

Analysis Date: 2025-07-20 13:39 UTC

1. Risk Rating: HIGH
   The company exhibits significant financial distress evidenced by large and growing net current liabilities and negative shareholders' funds. The balance sheet deficit has more than doubled from £32k negative in 2023 to nearly £60k negative in 2024, indicating worsening solvency and liquidity issues.

2. Key Concerns:

• Severe Liquidity Shortfall: Current liabilities of £63,605 vastly exceed current assets of £3,645, leaving a net working capital deficit of nearly £60,000. This suggests the company may struggle to meet short-term obligations as they fall due.
• Negative Equity and Ongoing Losses: Shareholders' funds are deeply negative at £-59,760, showing accumulated losses and no retained earnings. This undermines financial stability and investor confidence.
• Minimal Cash and Employee Base: The company holds only £53 in cash and reported zero employees during the latest financial year, raising concerns about operational capacity and cash flow generation.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed on time with no overdue returns, demonstrating compliance with regulatory requirements.
• Single Controlling Shareholder: Control by a single PSC with 75-100% ownership may facilitate swift decision-making and potential injection of additional capital if required.
• Active Online Presence: The company maintains an active website with clear contact information, indicating ongoing business activities despite financial challenges.

4. Due Diligence Notes:

• Investigate the nature and terms of the "other creditors" amounting to £61,501 to understand if these are trade payables, loans, or director-related liabilities and the risk of calls for immediate repayment.
• Clarify the company's cash flow projections and plans to address the negative working capital position, including any shareholder support or refinancing arrangements.
• Examine the business model viability given the absence of employees and very limited cash resources, including revenue generation and client pipeline.
• Confirm if any director or related party loans exist beyond those disclosed and assess their impact on liquidity and solvency.
• Assess the potential impact of any contingent liabilities or legal exposures not reflected in the accounts.