Company Number: 13758829

Analysis Date: 2025-07-29 18:48 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in its financial position over the last year, moving from positive net current assets and shareholders funds to a net current liability position and minimal shareholders funds. This level of working capital deficiency indicates a high risk of solvency and liquidity challenges.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£84,994) exceed its current assets (£54,951) by £30,043 as of the latest financial year, signaling potential short-term liquidity issues.
• Sharp Decline in Shareholders' Funds: Shareholders’ funds have dropped from £71,099 in 2022 to only £1,765 in 2023, reflecting accumulated losses or write-downs that erode the company’s financial buffer.
• Limited Operating Scale and History: Incorporated only in late 2021 with a micro-entity filing status and just 2 employees, the company has a very limited operational history and scale, which increases risk due to potential lack of diversification and resilience.

3. Positive Indicators:

• Compliance and Filing Status: The company is up to date with its filings (accounts and confirmation statement), indicating good regulatory compliance and governance practices.
• Stable Leadership: Directors have been consistent since incorporation, with no indication of disqualifications or governance issues.
• Micro Entity Status: The company benefits from simplified accounting and reporting requirements, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the causes of the sharp decline in net current assets and shareholders’ funds between 2022 and 2023, including any extraordinary expenses, write-offs, or changes in business conditions.
• Review cash flow statements and management accounts (if available) to assess ongoing liquidity and operational cash generation capability.
• Understand the company's business model and revenue streams given the SIC code “Other service activities not elsewhere classified,” which is very broad and non-specific.
• Verify the relationship and transactions between the two directors/shareholders, including any loans or related party transactions that might impact financial stability.
• Confirm whether there are any contingent liabilities or off-balance sheet risks not visible from the accounts.