Company Number: 13801625

Analysis Date: 2025-07-20 18:47 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net current assets, indicating ongoing liquidity issues; shareholders’ funds are negative in the latest year, suggesting solvency concerns. The micro-entity size and lack of employees further point to limited operational scale and resilience.

2. Key Concerns:

• Liquidity shortfall: Current liabilities (£48,469) exceed current assets (£37,176) by £11,293 as of 2023, worsening from prior years. This raises questions about the company’s ability to meet short-term obligations.
• Negative equity position: Shareholders’ funds declined from £627 in 2022 to -£1,693 in 2023, signaling accumulated losses eroding net assets and potential insolvency risk.
• Operational scale and sustainability: The company reports no employees and minimal fixed assets, operating as a micro-entity in management consultancy, which may limit its ability to generate sufficient revenue and withstand financial shocks.

3. Positive Indicators:

• Compliance and filing up to date: Accounts and confirmation statement filings are current with no overdue notices, indicating good regulatory compliance.
• Single controlling director with full ownership: Mr. Johnny Ivanson Ranny Nelson holds 75-100% ownership and voting rights, providing clear decision-making and control structure.
• No audit exemption reliance concerns: The company appropriately claims micro-entity exemption and is not required to file audited accounts, which is consistent with its size and profile.

4. Due Diligence Notes:

• Review detailed cash flow statements and bank balances (not provided) to assess short-term liquidity management and creditor payment history.
• Investigate the business model and revenue streams to understand how the company plans to address the continuing working capital deficits and negative equity.
• Clarify any contingent liabilities or off-balance sheet obligations that could worsen financial risk.
• Confirm the director’s plans or commitments (e.g., capital injections) to stabilize the financial position.
• Assess related party transactions or intercompany balances if applicable, given sole director ownership.