Company Number: 13036193

Analysis Date: 2025-07-20 18:17 UTC

1. Risk Rating: HIGH
   Justification: The company has persistent net liabilities and negative net current assets over multiple years, indicating ongoing solvency and liquidity challenges. The worsening financial position from 2023 to 2024 raises concerns about its ability to meet short-term obligations and sustain operations.

2. Key Concerns:

• Solvency Risk: Negative net assets of £2,700 as of 30 November 2024, worsening from previous years, indicate the company’s liabilities exceed its assets.
• Liquidity Concerns: Current liabilities (£25,090) exceed current assets (£20,630), resulting in net current liabilities of £4,460, suggesting potential cash flow constraints.
• Operational Stability: The company has had no employees on average and minimal fixed assets (£2,000), coupled with a history of name changes and limited financial scale, raising questions about ongoing business viability and revenue generation.

3. Positive Indicators:

• Compliance: All statutory filings are up to date; accounts and confirmation statements are filed timely with no overdue records.
• Ownership and Control: Clear and stable ownership with a single controlling director owning 75-100% shares and voting rights, potentially enabling swift decision-making.
• Micro Entity Status: Filing under micro-entity provisions reduces administrative burden and costs, appropriate for the company’s size.

4. Due Diligence Notes:

• Investigate the nature and timing of liabilities that have increased significantly from 2023 to 2024 to understand if these are trade creditors, loans, or accruals.
• Review cash flow statements or management accounts if available to assess the company’s ability to generate operational cash flow and meet short-term liabilities.
• Clarify the business model and revenue streams given the lack of employees and minimal fixed assets to evaluate the sustainability of the operations.
• Confirm there are no undisclosed contingent liabilities or related party transactions that could exacerbate financial risks.
• Assess any strategic plans or capital injection intentions from the sole shareholder to address negative equity.