Company Number: 12933568

Analysis Date: 2025-07-20 14:10 UTC

1. Risk Rating: HIGH
   The company shows persistent net liabilities, negative working capital, and accumulated losses over multiple years, indicating solvency concerns and financial distress.

2. Key Concerns:

• Negative shareholders' funds of £18,983 at year end 2023, worsening from £7,816 in 2022, indicating accumulated losses eroding equity.
• Negative current assets (£17,878) combined with current liabilities of £15,688 results in net current liabilities of £33,566, suggesting liquidity issues and difficulty meeting short-term obligations.
• The company is micro-entity sized but has not provided profit and loss details; absence of audit and limited disclosure restricts transparency and increases risk for investors.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, with no overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Ownership is concentrated in a single director and significant controller, which could allow for swift decision-making and potentially easier restructuring if needed.
• Fixed assets have some value (£14,583) which may provide some collateral or operational utility.

4. Due Diligence Notes:

• Investigate the nature and causes of the negative current assets figure (likely due to accounting treatment of liabilities exceeding receivables/cash).
• Review detailed profit and loss data to understand revenue trends, expense structure, and cash flow dynamics since these are not disclosed.
• Assess any contingent liabilities or off-balance sheet exposures that could exacerbate solvency risk.
• Confirm operational viability and business model sustainability given ongoing losses and negative equity.
• Evaluate director's plans for financial recovery or capital injection given the current net liability position.