Company Number: 12611300

Analysis Date: 2025-07-20 18:17 UTC

1. Risk Rating: HIGH

Justification: The company presents an unusual and concerning financial structure with current assets nearly equal to current liabilities, but net assets and shareholders’ funds reported as only £2. The presence of a large creditor balance classified as "amounts falling due after more than one year" almost equal to current assets suggests significant long-term liability or intercompany debt, which raises solvency and liquidity concerns.

2. Key Concerns:

• Negative Equity Position: Despite large current assets, net assets and shareholders’ funds remain minimal (£2), indicating the company’s liabilities effectively offset its assets, suggesting weak financial resilience.
• Large Long-Term Creditors: The nearly £150,005 shown as creditors due after more than one year raises questions about the nature of these obligations and the company’s capacity to service them.
• No Employees and Limited Operational Activity: The company reports zero employees and minimal fixed assets, implying limited operational activity, which may affect future sustainability and cash flow generation.

3. Positive Indicators:

• Timely Filing Compliance: No overdue accounts or confirmation statements, indicating regulatory compliance and good governance in filing obligations.
• Stable Control Structure: Clear ownership with a majority individual PSC (50-75% shares and voting rights) and a known corporate PSC, facilitating accountability.
• Micro-Entity Reporting: The company’s micro-entity status reduces complexity and filing burdens, consistent with a small scale operation.

4. Due Diligence Notes:

• Investigate the nature and terms of the £150,005 long-term creditor balance to understand who the creditors are and the payment obligations.
• Review cash flow statements and bank confirmations to assess actual liquidity beyond balance sheet figures.
• Clarify the company’s business model and revenue generation given zero employees and negligible fixed assets.
• Examine related party transactions, especially since the registered office address is linked to Magnetic Shields Limited, which is also a PSC.
• Confirm absence of contingent liabilities or off-balance sheet debts that could impact financial stability.