Company Number: 13667097

Analysis Date: 2025-07-20 11:45 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant solvency concerns with negative net assets and very large current liabilities compared to minimal current assets. The net current liabilities have increased substantially year-over-year, indicating deteriorating liquidity and financial health.

2. Key Concerns:

• Solvency Risk: Negative shareholders’ funds of £41,322 as of the latest accounts and worsening net current liabilities (-£120,877) indicate the company’s inability to meet its short-term obligations from existing assets.
• Liquidity Concerns: Cash and current assets are very low (£1,130), while current liabilities have surged to £122,007, suggesting immediate cash flow stress and potential difficulty in paying creditors on time.
• Operational Stability: The company employs only 1 person (including directors), implying limited operational capacity. The substantial increase in fixed assets from £690 to £80,727 may indicate capital expenditure not yet generating returns, exacerbating financial strain.

3. Positive Indicators:

• The company is compliant with filing deadlines for both accounts and confirmation statements with no overdue filings, indicating regulatory compliance and good governance practices.
• Directors have maintained continuity since incorporation with no negative conduct records visible, suggesting stable management.
• The business benefits from being a micro-entity, reducing administrative burden and audit requirements.

4. Due Diligence Notes:

• Investigate the nature and valuation of the fixed assets acquired during the latest year to assess if these are productive investments or illiquid assets.
• Review the composition and maturity profile of the current liabilities to understand creditor terms and potential refinancing risks.
• Obtain management commentary or strategic plans addressing the worsening financial position and how liquidity issues will be resolved.
• Confirm the absence of any undisclosed related party transactions or director loans contributing to the liabilities.
• Verify the company’s revenue streams and profitability trends, as accounts filed do not include profit and loss details due to micro-entity exemptions.