Company Number: 12767310

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

1. Risk Rating: HIGH
   Justification: The company’s directors have explicitly stated in the latest accounts that the financial statements have been prepared on a break-up basis rather than going concern. This indicates an imminent cessation of trading and potential winding up of the business, which constitutes a high solvency risk for creditors and investors.

2. Key Concerns:

• Going Concern Status: The directors have concluded the company is not a going concern and is being wound up, signaling operational instability and high risk of insolvency.
• Limited Cash Reserves: Cash on hand is low (£8,658 as of 31/12/2023), which may be insufficient to cover immediate liabilities and operational costs.
• Significant Related Party Balances: Large debtor and creditor balances with group undertakings (£43,718 receivable and £15,577 payable) create dependency risk and potential cash flow uncertainty.

3. Positive Indicators:

• Positive Net Current Assets: The company shows a positive net current asset position (£44,086), indicating that current assets exceed current liabilities.
• No Overdue Filings: Accounts and confirmation statements are up to date, showing compliance with statutory filing requirements.
• Unqualified Audit Report: The latest audit was unqualified, suggesting no material misstatements in the financial statements.

4. Due Diligence Notes:

• Investigate the reasons behind the directors’ decision to prepare accounts on a break-up basis and whether formal liquidation or administration proceedings are planned or underway.
• Review the nature and collectability of the significant debtor balance owed by group undertakings to assess recoverability.
• Confirm any contingent liabilities or off-balance-sheet obligations, especially related to the winding-up process or outstanding contractual commitments.
• Assess the impact of director changes, including recent appointments with US addresses, on governance and operational control.