Company Number: 12692410

Analysis Date: 2025-07-29 16:40 UTC

1. Risk Rating: HIGH

The company exhibits several indicators of financial fragility. Net assets and shareholders' funds are consistently at or near zero, indicating no equity buffer. Turnover is minimal (£20,000-£25,000 range), and net current assets are marginal or negative in some years, which raises concerns about liquidity and the ability to meet short-term obligations.

2. Key Concerns:

• Lack of Capitalization: Share capital is nominal (£1), with no accumulated reserves, leaving no equity cushion against losses or liabilities.
• Minimal Net Assets and Working Capital: Net assets stand at zero, and net current assets hover around zero or negative, signaling tight liquidity and potential inability to cover immediate debts.
• Limited Operational Scale and Revenue: Turnover is very low for a company incorporated in 2020, suggesting limited business activity and potentially unsustainable operations.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with accounts and confirmation statement filings, indicating good regulatory compliance.
• Active Status: The company remains active and not in liquidation or administration.
• Single Director with Clear Appointment: Only one director listed, no disqualifications or adverse records noted.

4. Due Diligence Notes:

• Verify the nature and sufficiency of the company’s operations given the small turnover and assets.
• Investigate the company's cash flow statements and bank balances, not provided here, to assess liquidity in more detail.
• Review any contingent liabilities or off-balance sheet obligations that might not be reflected in the micro-entity accounts.
• Assess whether the company has access to additional funding sources or capital injections planned.
• Confirm whether the minimal turnover and asset base reflects a start-up phase or a struggling business.