Company Number: 12518852

Analysis Date: 2025-07-29 14:04 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant negative investment balances, director loans at high levels, and very low net asset value which cumulatively suggest solvency and liquidity risk.

2. Key Concerns:

• Negative investments balance (£14,292) classified as current assets is unusual and may indicate misclassification or impairment issues.
• Director loans outstanding at £36,475 are substantial relative to net assets (£4,557), signaling dependence on related party funding and potential cash flow constraints.
• Very low current assets (£2,427) and cash (£16,719) relative to liabilities, combined with zero employees and minimal tangible fixed assets, raise concerns about operational sustainability and growth capacity.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, indicating good regulatory compliance.
• No overdue filings or audit requirements, consistent with a small company exemption.
• Net current assets are positive (£2,399), and current liabilities are minimal (£28) as per summary data, though detailed notes reveal more complexity.

4. Due Diligence Notes:

• Investigate the nature and reason for the negative investments figure of (£14,292) classified as current assets; this is atypical and may reflect accounting or reporting errors.
• Clarify terms and repayment schedule for director loans (£36,475) to assess financial support sustainability and risk of withdrawal.
• Examine cash flow statements and operational activity since the company reports zero employees and minimal fixed assets, to evaluate business continuity and revenue generation.
• Review VAT and tax creditor balances (£13,986 and £25,534 respectively) for payment status and potential tax compliance issues.