Company Number: 13884866

Analysis Date: 2025-07-29 17:28 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets and shareholders’ funds, indicating ongoing solvency concerns. Despite being micro-sized with minimal filing requirements, the net liabilities position worsened from -£9,860 in 2023 to -£13,386 in 2024. Current liabilities exceed current assets substantially, highlighting liquidity risks.

2. Key Concerns:

• Negative Net Assets and Equity Deficit: The company’s net assets and shareholder funds are negative and have deteriorated year-on-year, signaling accumulated losses or undercapitalization.
• Liquidity Imbalance: Current liabilities (£17,753) significantly exceed current assets (£5,216) as of the latest year-end, suggesting potential difficulties meeting short-term obligations.
• Single Director and Shareholder Control: With full ownership and control concentrated in one individual, there may be governance risk and limited oversight, increasing operational vulnerability.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date on both accounts and confirmation statement filings, indicating regulatory compliance and administrative diligence.
• Active Trading Status: The company remains active and operational with a clear business focus in specialised design activities, servicing niche clients.
• Minimal Employee Base: Employing only one person (likely the director) limits payroll and associated fixed costs, potentially aiding cash flow management in early stages.

4. Due Diligence Notes:

• Examine Underlying Causes of Negative Equity: Investigate whether losses stem from operating losses, shareholder loans, or accounting adjustments.
• Review Cash Flow and Debt Maturity Profiles: Assess the timing and nature of current liabilities and actual cash availability to understand liquidity pressures.
• Evaluate Director’s Financial Support and Plans: Given sole control by one individual, confirm any shareholder funding commitments or plans to restore solvency.
• Assess Business Model Viability: Validate revenue streams, client base stability, and growth prospects to determine operational sustainability.
• Check for Related Party Transactions: The director’s dual role raises the question of related party transactions or loans that could affect financial stability.