Company Number: 12418571

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

1. Risk Rating: HIGH
   The company exhibits persistent net current liabilities and negative shareholders’ funds over multiple years, indicating ongoing solvency challenges. The micro-entity size and exemption from audit limit financial transparency, increasing risk for investors.

2. Key Concerns:

• Negative Equity and Working Capital Deficit: Shareholders’ funds are negative (£-7,036 as of 2024) with net current liabilities of approximately £7,000, suggesting the company’s liabilities exceed its assets and potential liquidity issues.
• Lack of Profit and Loss Disclosure: The director has elected not to file a profit and loss account, limiting insight into operational performance and cash flow generation.
• Limited Operational Scale: The company employs only one person (the director), indicating potentially limited operational capacity and resilience.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are up to date, reflecting compliance with statutory filing requirements.
• Stable Current Assets: Current assets have remained relatively stable around £260k, which could provide some buffer to meet short-term obligations if liquid.
• Clear Ownership and Control: The principal director owns 75-100% of shares and voting rights, which may facilitate swift decision-making and capital support if needed.

4. Due Diligence Notes:

• Obtain detailed management accounts or cash flow statements to assess real-time liquidity and operational cash generation.
• Investigate the nature and liquidity of current assets to determine their usability in meeting short-term liabilities.
• Clarify the company’s business model and revenue streams to understand sustainability given limited staffing.
• Review any off-balance sheet liabilities or contingent risks not visible in micro-entity accounts.
• Confirm absence of director disqualifications or regulatory issues beyond Companies House filings.