Company Number: 13145126

Analysis Date: 2025-07-20 15:47 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, negative net assets, and persistent net current liabilities with no current assets to cover short-term debts. These indicators suggest financial distress.

2. Key Concerns:

• Negative net assets worsening from £-6,692 (2021) to £-17,376 (2024), indicating growing accumulated losses and erosion of shareholder equity.
• Lack of current assets (zero reported for 2024), combined with current liabilities of £16,296, suggests immediate liquidity issues and inability to meet short-term obligations.
• Continued operating losses reflected in negative working capital and shareholders’ funds over multiple years raise concerns about operational sustainability.

3. Positive Indicators:

• The company is up to date with filing requirements and is not overdue on accounts or confirmation statements, indicating compliance with regulatory obligations.
• The business has maintained a small but stable employee base (2 employees), implying some ongoing operational activity.
• Directors appear engaged and compliant with filing duties.

4. Due Diligence Notes:

• Investigate the company’s business model and revenue streams in detail to understand causes of recurring losses and negative working capital.
• Review cash flow statements (if available) and bank statements to assess liquidity management and any external funding or creditor arrangements.
• Clarify whether any related party transactions or director loans are supporting the company’s operations.
• Assess plans for financial restructuring or capital injection given the deteriorating net asset position.
• Confirm no imminent creditor actions or insolvency proceedings are pending despite the negative financial position.