Company Number: 13002563

Analysis Date: 2025-07-20 12:51 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, with negative net assets (£-7,320) and a large amount of long-term creditors (£9,555) exceeding current assets. Despite no overdue filings, the balance sheet indicates financial distress.

2. Key Concerns:

• Negative net assets and overall net liabilities indicate the company’s liabilities exceed its assets, posing solvency concerns.
• Long-term creditors of £9,555 greatly surpass current assets (£3,293), suggesting potential liquidity issues and difficulty in meeting obligations when due.
• Very limited scale and operational data: only one employee and no fixed assets, indicating a minimal operational base which may challenge sustainability.

3. Positive Indicators:

• The company is up to date with statutory filings (accounts and confirmation statement) with no overdue submissions or compliance issues.
• Shareholder control is clear and concentrated with a single individual holding over 75% ownership and directorship, potentially allowing decisive governance.
• The business operates in technology/software development and online retail sectors, which can offer scalability opportunities if financial constraints are addressed.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess repayment schedules and any restructuring agreements.
• Examine cash flow statements (not provided) for insight into operational cash generation and short-term liquidity management.
• Review any contingent liabilities or off-balance-sheet obligations that may exacerbate financial risk.
• Assess the current business model and revenue generation capacity given the micro-entity status and minimal staffing.
• Clarify the director’s plans or strategies to remediate the negative equity position.