Company Number: 13303682

Analysis Date: 2025-07-29 14:17 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with persistent negative net current assets and declining net assets leading to a net liabilities position as of the latest financial year.

2. Key Concerns:

• Negative Net Assets: The company moved from positive shareholder funds (£845) in 2023 to a net liability position of £(6,392) in 2024, indicating erosion of capital and potential insolvency risk.
• Severe Liquidity Issues: Current liabilities (£23,686) far exceed current assets (£2,048) in 2024, resulting in a substantial working capital deficit (net current liabilities £21,638), which raises doubt about short-term operational cash flow sufficiency.
• Small Scale with Minimal Capital: The share capital is nominal (£1.00), and the company is classified as micro, limiting its financial flexibility. Coupled with the negative equity, this indicates a fragile capital base unable to absorb financial shocks.

3. Positive Indicators:

• Consistent Director Appointment & Active Status: The sole director has been in place since incorporation, and the company is currently active with no overdue filings, which suggests compliance with regulatory requirements.
• Stable Employee Base: The company maintained an average of 7 employees, which may indicate operational continuity despite financial strain.
• Micro-Entity Filing Compliance: The company files on time and uses micro-entity provisions, reducing administrative burdens.

4. Due Diligence Notes:

• Review Cash Flow Statements: Since P&L data is not filed, obtain detailed cash flow information to assess operational cash generation or reliance on financing.
• Examine Debt Composition: Clarify the nature of current liabilities and any overdue payments to suppliers, tax authorities, or creditors.
• Investigate Director Plans: Understand the director’s strategy to restore solvency and improve liquidity, including any capital injections or restructuring plans.
• Confirm No Pending Legal or Regulatory Actions: Verify absence of director disqualifications, legal claims, or compliance breaches that may impact company viability.