Company Number: 12888192

Analysis Date: 2025-07-29 19:47 UTC

1. Risk Rating: HIGH
   The company exhibits significant and increasing negative net assets and net current liabilities over recent years, indicating deteriorating financial health and potential solvency concerns.

2. Key Concerns:

• Persistent and growing net liabilities: Net assets have declined from a positive £1,610 in 2021 to negative £36,272 in 2024, reflecting accumulated losses or funding deficits.
• Negative working capital: Current liabilities substantially exceed current assets (£36,747 vs. £475 in 2024), creating liquidity risks and an inability to meet short-term obligations.
• Micro entity with limited financial disclosures: The company files under micro-entity provisions, providing minimal financial information and no profit and loss statement, restricting transparent assessment of operational performance and profitability.

3. Positive Indicators:

• Timely filing compliance: The company is up to date with accounts and confirmation statement filings, suggesting adherence to statutory requirements and no immediate regulatory compliance issues.
• Stable employee count: Consistent average employee number (5 employees) over recent years may indicate operational continuity.
• No indication of insolvency proceedings: The company remains active with no liquidation, administration, or receivership status reported.

4. Due Diligence Notes:

• Investigate the nature and causes of the mounting liabilities and negative net assets to understand if these are temporary cash flow issues or structural losses.
• Review cash flow forecasts, bank facilities, and creditor arrangements to assess liquidity management and the risk of default on short-term obligations.
• Obtain management commentary or detailed financial statements beyond micro-entity filings to evaluate operational profitability, revenue trends, and cost control.
• Confirm the presence and effectiveness of any related-party transactions or director loans that may impact solvency.
• Assess any contingent liabilities or off-balance sheet obligations not visible from current accounts.