Company Number: 13920659

Analysis Date: 2025-07-29 12:09 UTC

1. Risk Rating: HIGH
   The company exhibits a persistent negative net asset position and negative working capital, which signals significant solvency and liquidity risks. The magnitude of net current liabilities has increased substantially over the last two years, indicating worsening financial health.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company reported net liabilities of £9,774 as of 28 February 2024, deteriorating from £2,726 the previous year, indicating accumulated losses eroding equity.
• Negative Net Current Assets: Net current liabilities stand at £9,774, reflecting that current liabilities exceed current assets, raising concerns about the company’s ability to meet short-term obligations.
• No Employees and Limited Turnover Data: The accounts indicate zero employees and no detailed turnover figures, suggesting potentially minimal operational activity or a business in early development without established revenue streams.

3. Positive Indicators:

• Timely Filing: The company’s accounts and confirmation statements are up to date with no overdue filings, reflecting compliance with statutory requirements.
• Single Controlling Shareholder: The 75-100% ownership by Mr. Wai Hung Poon, who is the sole director, suggests clear governance and decision-making authority without complex ownership disputes.
• Inventory Presence: There is stock recorded (£29,550 as of 2024) which may indicate some operational inventory or product base, although turnover details are lacking.

4. Due Diligence Notes:

• Investigate the nature and liquidity of stock holdings to assess if these can be converted to cash in a timely manner.
• Review detailed turnover and profitability data not included in the filleted accounts to understand revenue generation and business sustainability.
• Assess the reasons for ongoing losses and negative equity, including business model viability, cost structure, and market conditions.
• Clarify the absence of employees and whether the company is reliant on outsourcing or director-managed operations.
• Confirm any contingent liabilities or off-balance-sheet obligations that may exacerbate solvency risks.