Company Number: 14120275

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

1. Risk Rating: HIGH
   Justification: The company exhibits significant net liabilities (£40,104 negative net assets as of March 2024) and a large amount of long-term creditors (£65,138) compared to minimal current assets (£11,771). The negative shareholders' funds and continued losses indicate severe solvency risk.

2. Key Concerns:

• Solvency Risk: The company’s net liabilities position worsened from -£28,437 (2023) to -£40,104 (2024), indicating erosion of equity and inability to cover long-term debts.
• Liquidity Concerns: Although net current assets are positive (£10,649), current liabilities are understated due to significant creditors due after more than one year, suggesting potential cash flow stress.
• Operational Stability: The entity reports zero employees and minimal fixed assets, implying limited operational capacity or scale. Lack of recorded profit and loss accounts makes it difficult to assess profitability or revenue trends.

3. Positive Indicators:

• The company’s filings are up to date with no overdue accounts or confirmation statements, indicating compliance with statutory requirements.
• Directors appear stable, with no disqualifications or compliance issues noted.
• The company is classified as a micro entity, which may reduce administrative burden and complexity.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£65,138) to understand repayment obligations and whether these relate to shareholder loans or third-party debts.
• Obtain detailed profit and loss information to assess revenue generation, profitability, and cash flow trends since this data is absent from the accounts.
• Clarify business operations given zero employees and low asset base, to determine how the company generates income and if it is sustainable.
• Review directors’ plans or strategies for addressing the negative equity and improving financial health.
• Confirm whether any related party transactions or loans exist that might affect risk assessment.