Company Number: 14028010

Analysis Date: 2025-07-20 17:18 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant net current liabilities and net negative shareholders' funds that have deteriorated further compared to the prior year. The large director loan balance coupled with zero employees and ongoing losses raise serious concerns about solvency and liquidity.

2. Key Concerns:

• Severe liquidity shortfall: Current liabilities (£270k) vastly exceed current assets (£30k), yielding a net current deficit of £240k, indicating an inability to meet short-term obligations from available liquid resources.
• Negative net assets and shareholder funds: Net liabilities increased from £53k to £146k in one year, suggesting erosion of capital and accumulated losses.
• High director loans: Loans from directors rose to £250k, representing a substantial related-party liability that could pose risks if repayment terms are unfavorable or if director support ceases.

3. Positive Indicators:

• No overdue filings: The company remains compliant with statutory filing deadlines, mitigating regulatory risk.
• Sole director control: Single director and 75-100% ownership by Ms. Bich Tram Bui may allow streamlined decision-making and potential for swift remedial actions.
• Asset base: Tangible and intangible assets remain on the balance sheet, providing some collateral value, though limited relative to liabilities.

4. Due Diligence Notes:

• Investigate the terms, interest rates, and repayment schedule of the director loans to assess risk concentration and potential for creditor action.
• Review the company’s cash flow forecasts and business plan to understand if and how the liquidity deficits will be addressed or if additional funding is planned.
• Assess the reasons for zero employees and determine operational capacity and sustainability of business activities going forward.
• Verify if there are any contingent liabilities or impending creditor actions given the financial position.
• Confirm that no related party transactions or governance issues exist beyond disclosed director loans.