Company Number: 13802011

Analysis Date: 2025-07-29 20:23 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities worsening over the last two years and negative net assets. The financial position indicates a fragile capital structure with continued reliance on director support for going concern.

2. Key Concerns:

• Negative Net Current Assets and Net Assets: The company reported net current liabilities of £494 and net assets of -£494 as of the 2023 year-end, deteriorating from -£194 in 2022. This signals an inability to cover short-term obligations from current assets.
• Minimal Current Assets: Current assets remain static and very low (£185) over the years, insufficient to cover creditors due within one year (£679).
• Going Concern Reliance on Director Support: The accounts disclose that continuation depends on ongoing director support, indicating potential cash flow distress and lack of independent operational funding.

3. Positive Indicators:

• Current and Confirmation Statements Filed on Time: No overdue filings, indicating compliance with statutory requirements and governance responsibilities.
• Sole Director and PSC Consistency: Adrian Stephen Hutchin holds all shares and is the sole director, which may facilitate swift decision-making and operational control.
• Micro Entity Classification: The company is small with minimal complexity and low employee count (1), potentially limiting operational exposure and overhead burden.

4. Due Diligence Notes:

• Examine Director Support Details: Understand the nature and extent of the director’s financial support arrangements and any contingent liabilities or guarantees.
• Review Detailed Cash Flow and Trade Payables: Assess whether creditors are trade suppliers or related parties and the timeline of payable settlements.
• Obtain Forecasts and Business Plan: Given the negative equity and reliance on director backing, review projections to confirm business viability and plans to improve liquidity and solvency.
• Investigate Historical Financial Trends: Confirm whether the company’s financial deterioration is a new development or ongoing pattern since incorporation.
• Clarify Any Off-Balance Sheet Liabilities or Contingencies: Ensure there are no hidden risks not evident in the micro entity accounts.