Company Number: 14074027

Analysis Date: 2025-07-29 17:43 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with negative net assets and shareholders' funds that have deteriorated from -£3,321 in 2023 to -£5,751 in 2024. Current liabilities exceed current assets substantially, indicating inability to meet short-term obligations.

2. Key Concerns:

• Solvency Risk: Persistent and increasing negative net assets and shareholders' funds point to ongoing losses and potential insolvency risk.
• Liquidity Issues: Extremely low current assets (£52 in 2024) against much higher current liabilities (£5,803) suggest serious cash flow constraints and potential difficulties in paying creditors.
• Operational Sustainability: The company employs only one person (the director), has minimal assets, and no evidence of revenue or profitability, raising questions on the viability of ongoing operations.

3. Positive Indicators:

• Compliance: The company is up to date with filing both accounts and confirmation statements, with no overdue filings noted.
• Control and Governance: The sole director and 100% shareholder is clearly identified, with no disqualifications or adverse governance flags.
• Micro Entity Status: The company benefits from simplified filing and presumably limited operational scale, which may reduce administrative burdens.

4. Due Diligence Notes:

• Investigate the nature of the company's liabilities and their terms to assess the immediacy and severity of repayment obligations.
• Review cash flow statements or bank statements (if available) to understand liquidity management and source of funds covering liabilities.
• Clarify the business model, revenue generation, and plans for addressing accumulated losses and negative equity.
• Confirm absence of contingent liabilities or related party transactions not disclosed in the micro-entity accounts.
• Evaluate the director's financial support or guarantees and any plans for capital injection or restructuring.