Company Number: 13240998

Analysis Date: 2025-07-29 21:07 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk as evidenced by recurring and increasing net current liabilities and negative shareholders' funds. The net liabilities have grown from -£27,132 in 2021 to -£69,376 in 2025, indicating worsening financial health. This trend signals an inability to meet short-term obligations comfortably.

2. Key Concerns:

• Persistent and increasing negative net current assets (working capital) with a deficit of £71,907 in 2025, indicating liquidity stress.
• Substantial current liabilities of £72,202 against very limited current assets (£295), raising concerns about cash flow and operational sustainability.
• Continuing accumulation of losses reflected in a growing negative profit and loss reserve (-£69,476), suggesting operational difficulties and lack of profitability over multiple years.

3. Positive Indicators:

• The company is compliant with its filing requirements, with no overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Sole director is continuously appointed since incorporation, providing managerial stability.
• The company has tangible fixed assets, albeit modest (£2,531), which may provide some operational capacity or collateral value.

4. Due Diligence Notes:

• Investigate the nature and terms of the substantial current liabilities to assess creditor relationships, repayment schedules, and risk of enforcement actions.
• Review the company’s business plan and cash flow forecasts to evaluate operational viability and plans to restore profitability and solvency.
• Examine any contingent liabilities or off-balance sheet commitments that may exacerbate financial risk.
• Assess the director’s plans for turnaround or capital injection given the persistent losses and negative equity.
• Confirm the accuracy and completeness of debtor balances and the potential for realization to improve liquidity.