Company Number: 13804847

Analysis Date: 2025-07-29 18:59 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, demonstrated by net current liabilities of £28,509 and negative net assets of the same amount as at 31 December 2023. The minimal cash balance (£169) relative to current liabilities (£28,678) highlights liquidity concerns. The company's financial position deteriorated markedly from the previous year, indicating operational instability.

2. Key Concerns:

• Negative Net Assets and Net Current Liabilities: The company’s balance sheet shows a worsening deficit, with liabilities far exceeding current assets, posing a material risk to its ability to meet obligations.
• Extremely Low Cash Reserves: Cash on hand is negligible compared to short-term liabilities, which raises immediate liquidity issues and questions about ongoing operational funding.
• Lack of Audited Financials and Limited Disclosure: The accounts are unaudited and abridged, limiting transparency. Absence of detailed profit and loss information restricts assessment of profitability and cash flow generation.

3. Positive Indicators:

• No Overdue Filings: The company is current with its statutory accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Single Director and PSC Alignment: The sole director and person with significant control are the same individual, which can streamline decision-making and governance.
• Active Status: The company remains active and not in liquidation or administration, suggesting ongoing operations despite financial challenges.

4. Due Diligence Notes:

• Investigate the nature and timing of the substantial increase in current liabilities between 2022 and 2023 to understand causes and whether these are trade payables, loans, or other obligations.
• Review any available management accounts or cash flow forecasts to assess operational viability and plans to restore solvency.
• Confirm the company’s revenue and profitability trends, as turnover data is absent and the income statement has not been filed with Companies House.
• Assess director’s intentions regarding capital injection or restructuring, given the material deficit reported.
• Verify whether there are any contingent liabilities or off-balance sheet obligations not reflected in the abridged accounts.