Company Number: 13950052

Analysis Date: 2025-07-20 17:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risks as evidenced by consecutive years of net liabilities and negative shareholders' funds. The company’s net current liabilities and overall negative net assets indicate it is unable to cover its short-term obligations from current assets.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company reported net liabilities of £5,647 at 31 March 2024, worsening from £4,560 the prior year, indicating ongoing erosion of equity.
• Working Capital Deficiency: Net current liabilities were £6,811 in 2024, showing insufficient current assets (£1,371) to meet current liabilities (£8,182). This raises liquidity concerns.
• No Employees and Minimal Operating Activity: The average employee count dropped to zero from two in the prior year, suggesting limited or suspended operations, which may undermine revenue generation and business sustainability.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement were filed on time, indicating compliance with statutory obligations and governance discipline.
• Single Controlling Shareholder with Full Voting Rights: The sole director and 100% owner controlling decision-making may facilitate swift strategic changes or capital injections if necessary.
• Recent Incorporation and Micro Entity Status: Incorporated in 2022 and classified as a micro-entity, the company benefits from simplified reporting and lower administrative burdens.

4. Due Diligence Notes:

• Investigate the company's revenue streams and business operations since there is no indication of active trading or income generation.
• Assess the director’s plans for addressing the negative equity and liquidity shortfall, including any capital contributions or restructuring efforts.
• Review any off-balance-sheet liabilities or contingent obligations not disclosed in the micro-entity accounts.
• Confirm the reason for zero employees and whether the company is currently trading or dormant in practice.
• Verify any related party transactions or loans from the director or other entities that may support the company.