Company Number: 13231968

Analysis Date: 2025-07-20 16:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by persistent negative net current assets and a deterioration in net assets, moving from a positive £1,121 in 2024 to a negative £6,035 in 2025. The continual reliance on director loans and negative debtors figures further heighten risk.

2. Key Concerns:

• Negative net current assets for multiple years: This indicates that current liabilities exceed current assets by a wide margin, raising concerns about the company’s ability to meet short-term obligations.
• Negative debtor balances: The accounts show negative trade debtors (£9,330 in 2025), which is unusual and may suggest accounting irregularities or misclassifications that require clarification.
• Declining net assets and shareholders’ funds turning negative: This signals erosion of the company’s equity base and potential solvency issues.

3. Positive Indicators:

• The company is up to date with statutory filings (accounts and confirmation statement are not overdue).
• Operating with a very small workforce (1 employee) and low fixed assets, which may help reduce overhead costs.
• The director has legal responsibility and appears actively engaged, with no disqualifications noted.

4. Due Diligence Notes:

• Investigate the nature and cause of the negative debtor balances to understand whether this reflects accounting errors or underlying business issues.
• Clarify the terms and sustainability of director loans (£13,461 in 2025), including repayment plans and any potential for conversion to equity.
• Review cash flow statements and bank reconciliations (not provided) to assess liquidity dynamics beyond the snapshot balance sheet.
• Evaluate the business model and client contracts given the SIC code (management consultancy) and minimal staff, to assess operational viability.
• Confirm there are no pending legal or regulatory actions that might impact financial stability.