Company Number: 13838946

Analysis Date: 2025-07-19 12:53 UTC

1. Risk Rating: MEDIUM

Justification: The company is currently active with no overdue filings and an unqualified audit opinion, which are positive indicators. However, it has net liabilities and negative shareholder funds, indicating insolvency on a balance sheet basis. The director's confirmation of going concern is supported by parent company backing, but the working capital deficit and reliance on group funding present moderate solvency and liquidity risks.

2. Key Concerns:

• Negative net current assets of £16,413 and net liabilities of £12,569 as of 31 December 2023 demonstrate a weak financial position.
• Significant amounts owed to group undertakings (£196,160) suggest reliance on intra-group financing rather than external funding or operational cash flow.
• No employees other than the director and minimal tangible assets imply limited operational scale and potential vulnerability to business disruptions.

3. Positive Indicators:

• The company has filed accounts and confirmation statements on time with no overdue filings, indicating good compliance and governance.
• An unqualified audit report confirms the financial statements are presented fairly in accordance with applicable standards.
• The director has assessed and reasonably concluded the company is a going concern with written support from the parent company for at least 12 months post year-end.

4. Due Diligence Notes:

• Clarify the nature and terms of amounts owed to group undertakings, including repayment schedules and any formal agreements.
• Review cash flow forecasts and liquidity management plans given the working capital deficit and bank overdraft of £5,850.
• Investigate the business model and revenue generation capability given the absence of employees and limited assets to assess operational sustainability.