Company Number: 13131205

Analysis Date: 2025-07-20 11:33 UTC

1. Risk Rating: MEDIUM
   The company has recently returned to positive net current assets and shareholders' funds after several years of negative equity. However, the absolute amounts are very small (£11 net assets as of March 2024), indicating limited financial buffer and potential vulnerability to adverse events.

2. Key Concerns:

• Minimal Working Capital: Current assets of only £17 against current liabilities of £6 in 2024 show a very tight liquidity position, although it has improved from prior years of significant net current liabilities.
• History of Negative Equity: The company reported negative shareholders’ funds for several consecutive years through 2023, indicating prior losses or capital erosion that may impact operational stability.
• No Employees and Minimal Operations: The average number of employees is zero in 2024 (down from 1 in 2023), suggesting limited ongoing business activity or growth potential.

3. Positive Indicators:

• Improved Financial Position in Latest Year: Transition from negative net assets (-£2,587 in 2023) to positive (£11 in 2024) suggests recent efforts to stabilize finances, possibly through capital injection or debt reduction.
• No Overdue Filings: Both accounts and confirmation statement filings are current, indicating compliance with statutory requirements and governance discipline.
• Director Expertise: The sole director is an accountant by occupation, which may support prudent financial management.

4. Due Diligence Notes:

• Investigate Source of Financial Improvement: Clarify how the company moved from significant negative net assets to positive within one year, including any capital injections or debt restructuring.
• Assess Revenue and Profitability Trends: Since no turnover or profit figures are presented, request management accounts or additional financial data to evaluate operational sustainability.
• Review Business Model and Client Base: Given minimal assets and no employees, understand the scale and nature of ongoing business activities to assess viability beyond filing compliance.