Company Number: 12413117

Analysis Date: 2025-07-20 13:13 UTC

1. Risk Rating: HIGH
   The company exhibits persistent net liabilities and negative net current assets over multiple years, indicating ongoing solvency challenges. The micro-entity status and minimal share capital further constrain financial resilience.

2. Key Concerns:

• Negative Net Assets and Working Capital: From 2020 to 2024, net liabilities have increased from approximately £10,254 to £13,723, with net current liabilities around £14,000, signaling inability to cover short-term obligations from current assets.
• Lack of Equity Investment: Share capital remains nominal (£1.00), with no evidence of fresh equity injections to offset losses or improve liquidity.
• Limited Operational Scale: One employee (the director) and no significant fixed assets or operational scale raise questions on sustainable business operations and revenue generation.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, indicating regulatory compliance and governance attention.
• Active Status and No Liquidation: The company remains active without formal insolvency proceedings, suggesting current operations continue despite financial strain.
• Micro-Entity Reporting: Use of micro-entity provisions reduces administrative burden, appropriate for current scale.

4. Due Diligence Notes:

• Investigate the nature and source of current liabilities, especially the recurring high level relative to assets.
• Review cash flow statements (if available) to assess liquidity trends and ability to meet short-term payments.
• Understand the business model and revenue streams given the SIC code "Other service activities not elsewhere classified" and minimal staffing.
• Clarify whether the director is providing financial support or guarantees to sustain operations.
• Confirm absence of any director disqualification or regulatory actions beyond publicly available data.