Company Number: 13547940

Analysis Date: 2025-07-29 19:12 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets and net current assets, indicating potential solvency issues. The absence of cash and increasing current liabilities, largely director loans, elevate liquidity risk despite no overdue filings.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities (£11,136 as of 31 July 2024) reflect an erosion of shareholder equity and potential insolvency risk.
• Negative Working Capital: Net current liabilities of £14,641 suggest the company cannot cover short-term debts from current assets, raising liquidity concerns.
• Reliance on Director Loans: Current liabilities include £44,207 in director loans, which indicates dependence on related party funding and potential risk if this support ceases.

3. Positive Indicators:

• Compliance with Filings: No overdue accounts or confirmation statements; the company is current on statutory filings, reflecting sound governance practice.
• Consistent Reporting: Accounts prepared under FRS 102 Small Entities standards with no audit exemption breaches, suggesting reliable financial disclosure.
• Single Director Control: Mr Martyn Oxby holds full ownership and control, which can facilitate swift decision-making and potential capital injections if necessary.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans, including repayment terms and whether these are formalized to assess risk of withdrawal or enforcement.
• Confirm the company’s business model viability and revenue generation plans given zero employees and continuing losses.
• Assess cash flow forecasts and funding strategies to understand how the company intends to resolve liquidity deficits and move towards positive net assets.
• Review any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.
• Verify the reasons behind zero cash at year-end despite rising liabilities and whether this reflects operational difficulties or timing issues.