Company Number: 13039137

Analysis Date: 2025-07-20 13:30 UTC

1. Risk Rating: HIGH
   The company shows significant solvency concerns with net current liabilities of £15,201 at the latest year-end and negative shareholders’ funds of the same amount. This represents a marked deterioration from the prior year when net current assets and net assets were positive. The company’s cash balance has also fallen sharply from £7,202 to £520, indicating liquidity stress.

2. Key Concerns:

• Solvency and Negative Equity: The company’s net liabilities position and negative shareholders’ funds indicate it is currently insolvent on a balance sheet basis. This raises questions about its ability to meet obligations as they fall due.
• Liquidity Risk: Cash reserves have depleted substantially, from £7,202 to only £520, while current liabilities have more than doubled. This creates immediate cash flow pressure.
• Reliance on Director Loans: The current liabilities include £25,184 of loans from directors not present in the prior year, suggesting external funding dependency to sustain operations, which may not be sustainable long-term.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with its statutory filing obligations, with accounts and confirmation statements filed on time, indicating good governance in compliance matters.
• Single Director with No Employee Payroll: The company has zero employees and a single director, which may reduce operational costs and complexity.
• Established Accounting Policies: The accounts are prepared in accordance with FRS 102 Section 1A, and there is consistency in accounting policies year-on-year.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loans—are these repayable on demand, interest-bearing, or convertible? Assess the director’s capacity and willingness to continue funding the business.
• Review the company’s cash flow forecasts and business plan to understand how it intends to restore solvency and liquidity.
• Clarify the reason for the sharp increase in current liabilities and whether there are any overdue creditor payments or disputes.
• Assess the business model and revenue generation capability given the industry codes (financial intermediation and software development) and the absence of employees.
• Confirm no legal proceedings, contingent liabilities, or regulatory issues that could exacerbate financial difficulties.