Company Number: 13243869

Analysis Date: 2025-07-20 17:48 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position that has deteriorated significantly over the last financial year, with net assets dropping from -£9,250 in 2023 to -£16,761 in 2024. Additionally, current liabilities exceed current assets by a wide margin, indicating potential solvency and liquidity issues.

2. Key Concerns:

• Solvency Risk: The company’s net liabilities position and negative shareholders’ funds suggest it is insolvent on a balance sheet basis.
• Liquidity Concerns: Current liabilities (£25,302) far exceed current assets (£6,039), resulting in a negative working capital of £19,263, which raises concerns about the company’s ability to meet short-term obligations.
• Operational Sustainability: There are no employees reported, and the company’s fixed assets have decreased over time, which may indicate reduced operational capacity or lack of investment in the business.

3. Positive Indicators:

• Compliance: The company has filed its accounts and confirmation statements on time, with no overdue filings or penalties noted.
• Active Status: The company remains active and is not in liquidation or administration, suggesting ongoing trading activities.
• Simple Capital Structure: Share capital is minimal (£1), which is typical for a micro-entity and poses limited capital risk.

4. Due Diligence Notes:

• Investigate the cause of the sharp increase in current liabilities in the latest year and whether these are trade creditors, loans, or other obligations.
• Review cash flow statements or bank statements if available to assess actual liquidity and cash management practices.
• Understand whether the company has contingent liabilities or off-balance sheet exposures that may further impact financial stability.
• Confirm the ongoing nature of the business operations given the absence of employees and declining fixed assets.
• Clarify the director’s plans for resolving the deteriorating financial position and any external support or financing arrangements in place.