Company Number: 12487094

Analysis Date: 2025-07-20 17:10 UTC

1. Risk Rating: HIGH
   N4UK LIMITED shows persistent negative shareholders’ funds and reliance on provisions to offset liabilities, indicating solvency issues despite current asset coverage. The lack of employees and minimal share capital further raise concerns about operational sustainability.

2. Key Concerns:

• Negative Equity: Shareholders’ funds remain negative over multiple years (e.g., -£845 in 2024), signaling accumulated losses and potential insolvency risk.
• Unusual Provisions: The 2024 accounts report £39,396 in provisions for liabilities, a significant jump from zero the prior year, which may obscure true financial obligations or indicate contingent liabilities requiring scrutiny.
• Board Turnover: Several director resignations in early 2025 may imply governance instability or underlying business challenges.

3. Positive Indicators:

• Improved Current Assets: Current assets increased substantially in 2024 (£58,107 vs £16,618 in 2023), improving short-term liquidity coverage over current liabilities (£12,991).
• Timely Filings: Both accounts and confirmation statements are up to date with no overdue filings, demonstrating regulatory compliance.
• Micro-entity Status: The company benefits from simplified reporting requirements, which may reduce administrative burden.

4. Due Diligence Notes:

• Investigate the nature and justification for the large provisions recorded in 2024 and their impact on solvency.
• Review cash flow statements and bank reconciliations (not provided) to confirm liquidity beyond balance sheet snapshots.
• Assess reasons behind multiple director resignations in 2025 and any impact on strategic direction or control.
• Evaluate business model viability given zero employees and minimal share capital.
• Confirm if there are any related party transactions or off-balance sheet obligations.