Company Number: 13880027

Analysis Date: 2025-07-20 12:34 UTC

1. Risk Rating: MEDIUM
   The company exhibits some signs of financial strain, including a significant reduction in shareholders' funds and net current assets over the latest financial year. However, it remains solvent on a balance sheet basis with current assets exceeding current liabilities. The absence of overdue filings and the company’s active status support a moderate risk assessment.

2. Key Concerns:

• Declining Shareholders' Funds: Shareholders' funds decreased sharply from £9,835 in 2023 to £1,438 in 2024, indicating erosion of equity and possible losses.
• Reduced Net Current Assets: Current assets fell by approximately 40%, while current liabilities nearly doubled, leading to a negative working capital position after accounting for accruals and deferred income.
• No Employees and Limited Operating History: The company has no recorded employees and was incorporated only in early 2022, which may challenge operational stability and revenue generation.

3. Positive Indicators:

• Compliance with Filings: No overdue accounts or confirmation statements are reported, indicating good regulatory compliance and governance discipline.
• Sole Director and PSC Alignment: The sole director, who is also the 100% shareholder and person of significant control, simplifies management oversight and decision-making.
• Micro-Entity Status: Filing under micro-entity provisions reduces compliance burden and may be appropriate for the company’s scale.

4. Due Diligence Notes:

• Investigate Causes of Equity Decline: Review profit and loss details to understand the reasons behind the steep fall in shareholders’ funds and whether this is due to operational losses, shareholder withdrawals, or other factors.
• Clarify Cash Flow Status: Assess detailed cash flow statements or bank statements to confirm liquidity beyond the snapshot balance sheet figures, especially given the negative net working capital considering accruals.
• Confirm Business Viability and Strategy: Given no employees and limited operating period, inquire about the company’s business model, client base, revenue streams, and growth plans to evaluate operational sustainability.