Company Number: 13937716

Analysis Date: 2025-07-29 14:46 UTC

1. Risk Rating: HIGH
   The company exhibits a high-risk profile primarily due to its very low net asset base (£41) as of 28 February 2024, a significant decline from £2,282 in the prior year. The sharp erosion of net assets and minimal equity cushion raise serious concerns about its ability to absorb financial shocks or meet obligations without additional capital injection.

2. Key Concerns:

• Deteriorating Net Assets and Equity: Net assets dropped from £2,282 in 2023 to just £41 in 2024, indicating potential losses or write-downs that have substantially eroded equity.
• Reliance on Director Loan: The current assets include a £2,681 unsecured, interest-free loan to the director, which is repayable on demand. This is a liquidity risk if the director is unable or unwilling to repay promptly.
• Minimal Operational Scale and Resilience: The company is a micro-entity with only one employee (the director), limited fixed assets (£117), and very low net current assets (£427), suggesting limited operational scale and financial buffer.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with both accounts and confirmation statement filings, indicating sound regulatory compliance.
• Clear Ownership and Control: Single shareholder/director structure (Mr. James Barry Hunter) ensures clear decision-making and control without governance complexity.
• No Indication of Insolvency Proceedings: The company is active with no signs of liquidation, administration, or receivership.

4. Due Diligence Notes:

• Investigate the causes behind the drastic drop in net assets—review profit and loss accounts and notes for impairment, exceptional costs, or losses.
• Assess the recoverability and terms of the director loan: whether this is effectively an injection of funds or a receivable that could affect liquidity if not repaid.
• Review cash flow statements and future forecasts to understand operational cash generation capability and sustainability.
• Confirm the nature and stability of revenue streams given the micro scale and single employee operation.
• Verify whether any contingent liabilities or related party transactions exist that may impact financial stability.