Company Number: 12445678

Analysis Date: 2025-07-29 18:39 UTC

1. Risk Rating: HIGH
   The company exhibits a concerning negative net asset position and significant long-term liabilities exceeding current assets, indicating solvency risk.

2. Key Concerns:

• Negative shareholders’ funds (£-1,271) reflecting net liabilities, signaling potential insolvency.
• Current liabilities (£87,008) and long-term creditors (£122,400) vastly exceed current assets (£9,801), indicating poor liquidity and cash flow constraints.
• Lack of profit and loss account filing and absence of detailed operational financial data limit transparency on ongoing business viability.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, demonstrating regulatory adherence.
• The business holds fixed assets valued at £198,336, which may represent tangible property or investments supporting operational capacity.
• Continuity of directorship since incorporation suggests stable governance at the leadership level.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£122,400) to assess repayment schedules and covenant risks.
• Obtain profit and loss statements or management accounts to evaluate operational performance, revenue streams, and cash flow generation.
• Clarify the reason for the negative net asset position and any plans for recapitalisation or debt restructuring.
• Verify the status and valuation of fixed assets to determine their liquidity and potential to cover liabilities.