Company Number: 13156039

Analysis Date: 2025-07-29 13:03 UTC

1. Risk Rating: HIGH

Justification: The company exhibits significant negative net assets (liabilities) as of the latest accounts, indicating solvency concerns. Current liabilities vastly exceed current assets, showing liquidity stress. The company is micro-sized with minimal assets and limited equity, raising questions about operational sustainability.

2. Key Concerns:

• Negative Net Assets: The balance sheet shows net liabilities of £8,634 in 2024 and £7,922 in prior years, indicating the company owes more than it owns, a key solvency red flag.
• Liquidity Deficit: Current assets are minimal (£153) compared to current liabilities (£8,787), suggesting difficulty meeting short-term obligations.
• Lack of Asset Base and Revenue Data: Fixed assets are zero for 2024 and very low previously; no turnover or profit figures are provided, making it hard to assess business viability or cash flow generation.

3. Positive Indicators:

• Compliance with Filing: Accounts and confirmation statements are filed on time, indicating no regulatory compliance issues at present.
• Stable Leadership: The same director has been in place since incorporation, and no disqualifications or governance flags are noted.
• Clear Industry Focus: The company operates in IT service and consultancy sectors, which can have low capital requirements.

4. Due Diligence Notes:

• Obtain detailed profit and loss accounts or management accounts to assess revenue streams and profitability, as current filings lack this information.
• Investigate the nature of the current liabilities to understand if they are trade creditors, loans, or director’s loans, and assess repayment plans.
• Confirm if the company has ongoing contracts or pipeline work that can improve liquidity and solvency.
• Review the business plan and cash flow forecasts to evaluate operational sustainability.
• Verify if there are any contingent liabilities or off-balance sheet commitments.