Company Number: 14837784

Analysis Date: 2025-07-29 19:39 UTC

1. Risk Rating: HIGH
   The company shows significant net liabilities of £54,973 against minimal fixed and current assets, indicating poor solvency. The presence of long-term creditors £77,000 with no employees and minimal current assets raises concerns about the company’s ability to meet obligations.

2. Key Concerns:

• Negative Net Assets: The balance sheet reveals net liabilities of £54,973, suggesting the company has more liabilities than assets and is technically insolvent.
• Long-Term Creditors: £77,000 of creditors fall due after more than one year, which may represent loans or other debt obligations that require servicing despite the company’s weak equity position.
• No Employees / Operational Scale: The company has reported zero employees during the period, raising questions about ongoing operational capacity and revenue-generating activities to support debt repayment or growth.

3. Positive Indicators:

• Current Filing Compliance: The company is current with both accounts and confirmation statement filings with no overdue returns, indicating sound regulatory compliance so far.
• Established Ownership Structure: Significant control is clearly documented, with a firm (Barefoot Ape Ltd) owning 75-100% shares and two directors actively appointed, which may support governance stability.
• Micro-Entity Filing Simplifications: As a micro-entity, the company benefits from simplified reporting requirements which reduce administrative burden during its early stage.

4. Due Diligence Notes:

• Investigate the nature and terms of the £77,000 long-term creditors to understand repayment schedules and covenants.
• Review the company’s business model, contracts, and revenue streams to assess operational viability and future cash flow prospects.
• Clarify the role and financial support from Barefoot Ape Ltd and the two directors, including any intercompany loans or guarantees.
• Confirm if the company has secured or expects additional funding to address the current negative equity position.
• Assess any contingent liabilities or off-balance-sheet risks not reflected in the accounts.