MY BLUESKY SERVICES LIMITED

Risk Rating: HIGH Justification: The company is technically insolvent, with net liabilities of £106,022 as of November 2024, a position that has deteriorated consistently over the last decade. Furthermore, there is a severe liquidity deficit, with current liabilities exceeding current assets by more than £88,000, indicating an absolute reliance on creditor forbearance or undisclosed external support to continue trading.

Key Concerns: * Deepening Technical Insolvency: The company has held negative net assets for at least ten consecutive years. Net liabilities have grown from approximately £24k in 2016 to over £106k in 2024. A balance sheet in this condition means the company cannot meet its total obligations if winding up were to occur, posing a significant solvency risk. * Severe Liquidity Crisis: As of November 2024, current assets stand at a mere £8,270 against current liabilities of £96,822. This yields a current ratio of approximately 0.085. The company has virtually no capacity to meet its short-term debts from its existing liquid resources. * Opaque Debt Structure: As a micro-entity, the company files highly abbreviated accounts with no requirement to disclose the nature of its creditors. It is unclear whether the £114,292 in total liabilities is owed to trade suppliers, HMRC, or is comprised of director loans. If third-party creditors demand payment, the company has no means to comply.

Positive Indicators: * Regulatory Compliance: Despite its precarious financial position, the company maintains good standing with Companies House. Accounts and confirmation statements are filed on time and are not overdue, indicating administrative stability and a desire to remain legally compliant. * Longevity and Creditor Tolerance: The company has been incorporated for over 13 years and has traded through a decade of balance sheet insolvency. This strongly suggests that the creditors are likely related parties (such as the sole director) who are willing to defer repayment, allowing the business to continue as a going concern. * Consistent Asset Base: While minimal, current assets have remained relatively stable year-over-year (£8,270 in 2024 vs. £8,378 in 2023), suggesting some level of ongoing, albeit small-scale, operational activity rather than a completely dormant shell.

Due Diligence Notes: * Creditor Identity: It is imperative to determine who the company owes money to. If the liabilities are director loans, the insolvency is less of an immediate threat as the director is unlikely to force their own company into liquidation. If the debts are owed to HMRC or trade creditors, the risk of formal recovery action is significantly higher. * Going Concern Basis: Investigate whether there is a formal director's loan agreement or a waiver of repayment rights. Without confirmation that short-term liabilities will not be called in, the going concern status of the company is questionable. * Operational Reality vs. SIC Codes: The company lists three highly disparate SIC codes (internet retail, freight transport, and telecommunications). Clarification is needed on whether the company is actively trading in these sectors, or if these are legacy codes from previous activities. The single employee (likely the director) suggests current operations are minimal. * Long-term Creditor Shift: Note the shift in liabilities from long-term to short-term. Long-term creditors fell from £28,063 to £17,470, while current liabilities rose from £85,296 to £96,822. It should be investigated whether long-term debts are being recalled or reclassified, further squeezing immediate liquidity.