Company Number: 14017744

Analysis Date: 2025-07-29 21:02 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, reflected by persistent net liabilities and negative net current assets over multiple years. The decline from a net liability of £129 in 2023 to £1,420 in 2024 without any improvement suggests financial distress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities worsened from -£129 in 2023 to -£1,420 in 2024, indicating erosion of equity and potential insolvency risk.
• Severe Working Capital Deficit: Current liabilities exceed current assets substantially (£1,849 vs. £18 in 2024), implying difficulty in meeting short-term obligations as they fall due.
• Lack of Profit and Loss Disclosure: The absence of profit and loss accounts in the filing limits insight into operational performance and cash flow generation capacity, raising concerns about sustainability.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with its statutory accounts and confirmation statement filings, indicating regulatory compliance.
• Micro-Entity Status: As a micro-entity, the company benefits from simplified reporting requirements, which may reduce administrative burden and costs.
• Single Shareholder Control: Ownership and control concentrated with a single individual may facilitate swift decision-making and restructuring if required.

4. Due Diligence Notes:

• Investigate the underlying causes of the negative equity and working capital deficits, including any related party transactions or unusual creditor arrangements.
• Obtain management accounts or cash flow statements to assess operational cash generation and short-term liquidity beyond the filed balance sheet.
• Review director’s plans for financial recovery or capital injection, given the continued losses and net liabilities.
• Confirm absence of contingent liabilities or off-balance sheet obligations that may exacerbate financial risk.
• Assess any director conduct records and governance practices given sole director control, to evaluate operational stability and compliance culture.