Company Number: 13734266

Analysis Date: 2025-07-29 16:54 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency and liquidity concerns, with persistent net liabilities and negative working capital. The financial position indicates inability to meet short-term obligations without external support, posing a high risk to creditors and investors.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities increased from £7,459 in 2022 to £16,787 in 2023, indicating deteriorating financial health and erosion of shareholder equity.
• Severe Working Capital Deficit: Current liabilities (£56,536) substantially exceed current assets (£5,925), yielding a negative net current asset position of £50,611, which suggests inability to cover short-term debts.
• Minimal Operational Scale: The company operates with a single employee (the director) and limited fixed assets, implying limited operational capacity and potentially constrained revenue generation.

3. Positive Indicators:

• Timely Filing Compliance: All statutory filings, including annual accounts and confirmation statements, are current with no overdue submissions, indicating satisfactory regulatory compliance.
• Stable Ownership and Management: The sole director and 100% shareholder retains consistent control since incorporation, which may facilitate streamlined decision-making.
• Micro-Entity Status: Operating under micro-entity accounting provisions reduces administrative burden and costs.

4. Due Diligence Notes:

• Examine Business Model and Revenue Streams: Investigate the company’s activities given the SIC code for holding companies and its minimal asset base to understand how it generates income and services liabilities.
• Assess Funding Sources and Cash Flows: Determine whether the company relies on director loans, related party funding, or external financing to sustain operations given persistent negative net assets and liquidity shortfalls.
• Review Director’s Plans and Risks: Evaluate any disclosed strategic plans or risk disclosures in the directors’ report or elsewhere to gauge the sustainability and turnaround prospects.
• Confirm Absence of Undisclosed Liabilities: Given the negative equity, verify any contingent liabilities or off-balance sheet obligations that may exacerbate financial risk.

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