Company Number: 13109115

Analysis Date: 2025-07-20 12:53 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities of £3,232 as of the latest financial year and worsening net current liabilities. The small scale of operations and negative equity position present a high risk profile.

2. Key Concerns:

• Negative Net Assets: The company's net assets deteriorated from a positive £464 in 2024 to a negative £3,232 in 2025, indicating erosion of shareholder funds and potential insolvency risk.
• Working Capital Deficit: Current liabilities (£5,394) exceed current assets (£439) by a wide margin, reflecting poor short-term liquidity and potential cash flow constraints.
• Single Director and Micro Entity Status: With only one director and classified as a micro-entity, there may be limited operational scale and governance robustness, which could impact the company’s ability to manage financial stresses.

3. Positive Indicators:

• Up-to-date Filings: Both annual accounts and confirmation statements are filed on time with no overdue status, indicating compliance with statutory requirements.
• Active Trading Status: The company remains active and is not in liquidation or administration, suggesting ongoing operations.
• Owner-Managed: The sole director and 75-100% shareholder status by Mr Edward Robert Midson implies direct control and potentially swift decision-making.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and the increase in current liabilities during the latest financial year.
• Review cash flow statements and creditor aging to assess liquidity management and risk of default on obligations.
• Clarify the nature of business activities and revenue sources given the small asset base and employee count to gauge operational sustainability.
• Confirm absence of any director disqualifications or regulatory issues beyond Companies House filings.
• Consider future funding plans or support mechanisms if the company is to recover from its current net liabilities position.