Company Number: 13029769

Analysis Date: 2025-07-20 12:42 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities and negative shareholders' funds reported for the last two years and a substantial deterioration in working capital.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company reported net liabilities of £20,818 as of 30 November 2024, and shareholders' funds are negative at £(418,735) in the income statement reserve, indicating accumulated losses and erosion of capital.
• Severe Liquidity Deficit: Net current assets are deeply negative (£-320,818), driven primarily by directors’ loan accounts totaling £319,120 classified as current liabilities, suggesting reliance on director funding and potential cash flow constraints.
• Non-trading SIC Code with Investment Assets: The classification as a "Non-trading company" (SIC 74990) and the presence of £300,000 investments acquired recently raise questions about operational activity and the sustainability of the business model, especially given persistent losses.

3. Positive Indicators:

• No Overdue Filings: The company is current with its statutory filing obligations, indicating compliance with Companies House requirements.
• Directors in Place Without Disqualification Records: Two directors are appointed and actively managing the company with no apparent governance red flags such as disqualifications.
• Recent Investment Acquisition: The £300,000 investment asset recorded in 2024 could potentially generate future returns, subject to further analysis.

4. Due Diligence Notes:

• Investigate the nature and valuation of the £300,000 investment to assess recoverability and potential income generation.
• Review directors’ loan account terms, including repayment schedules and whether these loans are sustainable or at risk of crystallizing into creditor claims.
• Ascertain the cause of the rapid decline in net assets and working capital from 2021 to 2023/24, including any trading activities, extraordinary expenses, or write-downs.
• Confirm that the non-trading SIC code aligns with the company’s actual business activities and whether this status is temporary or permanent.
• Evaluate future cash flow projections and funding plans to determine operational viability.