Company Number: 13802510

Analysis Date: 2025-07-20 18:27 UTC

1. Risk Rating: HIGH
   The company shows persistent net liabilities and negative working capital, indicating ongoing solvency and liquidity challenges. The absence of profitability and minimal asset base heighten financial risk.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company’s net assets are negative (£-306 as of 2024), though improved from prior years, and net current liabilities persist, suggesting it is unable to cover short-term liabilities with current assets.
• No Profitability or Revenue Data Disclosed: The accounts do not provide a profit and loss statement, limiting insight into operational performance, but ongoing losses are implied by cumulative negative equity.
• Single Director and Shareholder Control: With 100% ownership and control by one individual, there is concentration risk and limited governance oversight.

3. Positive Indicators:

• Improvement in Financial Position: Although still negative, net liabilities reduced from £-2,566 in 2023 to £-306 in 2024, showing some progress in balance sheet strength.
• Compliance with Filing Requirements: The company is up to date on accounts and confirmation statement filings, reducing regulatory risk.
• Micro Entity Status Simplifies Reporting: The company benefits from simplified reporting requirements, which reduces administrative burden and costs.

4. Due Diligence Notes:

• Request full profit and loss accounts to understand revenue streams, cost structure, and cash flow generation.
• Investigate the nature of the liabilities and whether any arrangements exist with creditors to manage short-term debt.
• Review director’s plans or strategy for achieving profitability or recapitalization given the continuing net liability position.
• Confirm whether the company is trading or dormant, as minimal employee count and micro size may indicate limited operational activity.
• Assess potential related party transactions given sole director/shareholder role.