Company Number: 13452951

Analysis Date: 2025-07-20 14:11 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, with consistent negative net assets and increasing net current liabilities over the past three years. These financial indicators suggest difficulty in meeting short-term obligations and potential ongoing operating losses.

2. Key Concerns:

• Persistent Negative Net Assets: The net liabilities have increased from -£2,524 in 2023 to -£12,972 in 2024, indicating erosion of shareholder equity and potential insolvency risk.
• Liquidity Deficit: Current liabilities (£33,454) substantially exceed current assets (£21,122) as of June 2024, resulting in negative working capital of -£12,332, which may impair the company’s ability to fund day-to-day operations.
• Director Turnover and Control Concentration: The resignation of a director who also holds 25-50% ownership and voting rights (Philip Smith) earlier in 2024 may raise governance and continuity concerns, especially given the company’s fragile financial position.

3. Positive Indicators:

• Compliance Status: The company is active and has filed accounts and confirmation statements on time with no overdue filings, indicating regulatory compliance.
• Micro-Entity Reporting: Utilization of micro-entity reporting standards simplifies financial disclosures and may reduce administrative burdens.
• Stable Employee Base: The company maintained an average of 3 employees over the last two years, showing operational continuity at a small scale.

4. Due Diligence Notes:

• Investigate underlying causes for deteriorating net assets and recurring liquidity shortages, including revenue trends, expense controls, and cash flow management.
• Review the operational viability of the business model under SIC code 96090 (“Other service activities not elsewhere classified”), particularly given limited financial data and negative equity.
• Assess the impact of the significant shareholder/director resignation on strategic direction and decision-making capabilities.
• Confirm details on any contingent liabilities or off-balance-sheet obligations that may exacerbate financial risks.
• Explore the completeness of financial reporting, noting the absence of a delivered profit and loss account and the exemption from audit, which limits insight into profitability.