Company Number: 13543013

Analysis Date: 2025-07-29 18:57 UTC

Risk Rating: HIGH

Justification: The company shows negative net assets and shareholders’ funds as of the latest financial year end, indicating insolvency on a balance sheet basis. Despite modest turnover growth, current assets have sharply decreased, and fixed liabilities remain substantial. This presents a significant solvency and liquidity risk.

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Key Concerns

1. Negative Net Assets (£-1,606) as of 31 August 2024:
   The company moved from positive net assets (£3,230) in prior years to negative, indicating accumulated losses or write-downs that have eroded equity. This signals financial distress.

2. Large Long-Term Creditors (£17,942) with Low Current Assets (£2,671):
   The balance sheet shows substantial creditors due after more than one year, yet current assets have dropped drastically compared to prior years. This mismatch raises liquidity concerns and the company’s ability to meet obligations.

3. No Employees and Minimal Turnover (£14,626):
   The company operates with zero employees and very limited turnover, which questions operational scale and sustainability. Without clear revenue growth or staffing, the business model may not support ongoing viability.

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Positive Indicators

• Timely Filing Compliance:
  The company is up to date with accounts and confirmation statement filings, indicating regulatory compliance and governance discipline.

• Turnover Growth:
  Turnover increased from £9,265 in 2023 to £14,626 in 2024, showing some top-line improvement despite scale limitations.

• No Audit Requirement:
  As a micro-entity, the company benefits from simplified reporting, reducing administrative burden and costs.

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Due Diligence Notes

• Investigate Nature and Terms of Long-Term Creditors:
  The £17,942 creditors due after one year need detailed scrutiny to understand their origin, interest terms, and repayment schedule.

• Examine Causes of Equity Erosion:
  The drop from positive to negative net assets should be explored—whether due to depreciation (£6,541 charge), write-offs, or other losses.

• Assess Business Model and Revenue Pipeline:
  With zero employees and low turnover, verify how services are delivered and prospects for scaling revenue.

• Review Director Resignation Impact:
  One director resigned shortly before the latest accounts; assess any impact on governance or operational continuity.

• Confirm No Off-Balance Sheet Liabilities:
  Although none disclosed, verify there are no contingent liabilities or guarantees that could affect solvency.

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