Company Number: 13353378

Analysis Date: 2025-07-29 15:07 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk, evidenced by net liabilities position (negative net assets) of approximately £45,417 as of the latest financial year. The consistent sizeable current liabilities relative to fixed assets and negligible current assets underscore liquidity concerns. The micro-entity status with minimal equity and absence of cash or other current assets further accentuates financial fragility.

2. Key Concerns:

• Persistent negative net assets over multiple years, indicating erosion of shareholder funds and potential insolvency risk.
• Current liabilities nearly equal to fixed assets with zero net current assets, suggesting inability to meet short-term obligations without asset liquidation.
• Lack of cash or receivables (zero current assets in recent years) raising red flags about operational cash flow management and ongoing sustainability.

3. Positive Indicators:

• The company maintains up-to-date statutory filings with no overdue accounts or confirmation statements, reflecting compliance diligence.
• Directors have remained consistent since incorporation, potentially indicating stable management.
• Micro-entity classification limits disclosure requirements but also suggests relatively low operational scale and complexity.

4. Due Diligence Notes:

• Investigate the nature and terms of the £397k+ current liabilities to assess if these are short-term payables, creditor arrangements, or loans requiring immediate repayment.
• Review cash flow statements and bank reconciliations (not provided) to understand liquidity and working capital dynamics.
• Clarify the business model and revenue generation to evaluate sustainability given fixed asset-heavy balance sheet but absence of current assets.
• Assess directors’ plans or external support to address the negative equity and funding gaps.
• Confirm no contingent liabilities or related party transactions that may represent hidden risks.