Company Number: 13887700

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

1. Risk Rating: HIGH
   The company demonstrates significant solvency and liquidity concerns, with net current liabilities exceeding current assets by a wide margin and negative net assets. Operational sustainability appears questionable given the small employee base and mounting creditor balances.

2. Key Concerns:

• Severe Liquidity Deficit: As at 31 December 2023, current liabilities (£382,851) substantially exceed current assets (-£150), resulting in a negative net current asset position of -£383,001. This gap has widened compared to prior years, indicating deteriorating short-term financial health.
• Negative Net Assets: Shareholders’ funds have turned negative at -£115,664, reflecting accumulated losses and an erosion of equity capital that may impair the company’s ability to secure financing or trade credit.
• Concentration of Control and Recent Director Turnover: A single corporate PSC controls 75-100% of shares and voting rights, which may limit governance diversity. Additionally, there have been multiple director changes within a short period, potentially indicating management instability.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, suggesting regulatory compliance is currently maintained.
• Significant Tangible Fixed Assets: The company holds tangible fixed assets valued at £267,337, which may provide some collateral value or operational capacity.
• Low Employee Count: With only one employee reported, overhead costs may be limited, which could support operational flexibility.

4. Due Diligence Notes:

• Examine Cash Flow and Working Capital Trends: Investigate the timing and nature of creditor balances, cash flow forecasts, and whether the company is meeting short-term obligations to assess immediate solvency risk.
• Review Directors’ Backgrounds and Changes: Understand reasons behind recent director resignations and appointments, along with the involvement and influence of the controlling shareholder entity.
• Assess Underlying Business Model and Revenue Generation: Given the SIC code (82990 - other business support services not elsewhere classified) and limited operational scale, determine revenue streams, client concentration, and sustainability of business activities.
• Verify Fixed Assets Valuation and Utilization: Confirm the nature, condition, and market value of fixed assets relative to their book value to assess potential for asset-based lending or liquidation value.
• Consider Impact of Prior Year Adjustments: Review notes on prior year fixed asset additions omitted previously to understand their effect on financial reporting and asset base.