Company Number: 13256238

Analysis Date: 2025-07-29 14:23 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risks with net liabilities reported in the latest accounts, negative working capital, and long-term creditors exceeding current assets. The absence of trading activity and reliance on director funding further elevate financial uncertainty.

2. Key Concerns:

• Negative Net Assets: As of 31 March 2023, shareholders' funds are negative (£-5,117), indicating insolvency on a balance sheet basis.
• Liquidity Strain: Current liabilities (£249,173) substantially exceed current assets (£78,056), resulting in a net current liability position of £128,555, posing a liquidity risk.
• Non-Trading Status: The company has not commenced trading as of the latest accounts, raising questions about operational viability and revenue generation prospects.

3. Positive Indicators:

• Director Control and Commitment: The sole director owns 75-100% of shares and controls the company, providing clear leadership and potential for continued financial support.
• Up-to-Date Filing Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance practices.
• Micro-Entity Status: Simplified filing and accounting requirements reduce administrative burden, appropriate for the company size and stage.

4. Due Diligence Notes:

• Investigate the reason for the substantial increase in fixed assets from £16,935 (2022) to £261,311 (2023) despite no trading activity. Clarify the nature and funding of these assets.
• Assess the company's business plan and timeline for commencing trading to evaluate future cash flow prospects.
• Review director's funding arrangements or potential liabilities not reflected in the accounts.
• Confirm absence of contingent liabilities or disputes that could further impact solvency.
• Examine any external financing or support mechanisms to cover current and long-term liabilities.