Company Number: 12734385

Analysis Date: 2025-07-20 13:39 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net assets and net current liabilities, indicating ongoing solvency and liquidity challenges. The magnitude of these deficits is modest but stable, and the company relies heavily on director loans, which may not be sustainable or indicative of external creditor confidence.

2. Key Concerns:

• Negative Net Assets and Working Capital: Net liabilities of £831 as of July 2024 and consistent negative net current assets signal the company’s inability to cover short-term obligations from current assets.
• Reliance on Director Loans: Current liabilities are entirely composed of loans from the director (£9,810 in 2024), indicating external financing is not being utilized and raising questions about financial independence and risk concentration.
• Minimal Share Capital and Equity Deficit: Share capital is nominal (£1), with accumulated losses reflected in the profit and loss reserve, increasing financial fragility and reducing the company’s buffer against losses.

3. Positive Indicators:

• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are filed on time, reflecting good regulatory compliance and governance from an administrative perspective.
• Stable Director Control and Management: A single director controls 75-100% of shares and voting rights, providing clear leadership and decision-making authority without apparent governance disputes.
• Consistent Cash Balances: Cash on hand remains stable near £9,000 across recent years, suggesting some degree of operational liquidity management despite overall net liabilities.

4. Due Diligence Notes:

• Review Director Loan Terms and Repayment Plans: Understand the nature of loans from the director, their terms, and the company’s strategy for repayment or refinancing.
• Examine Revenue Streams and Profitability Trajectory: Since profit and loss accounts are not publicly filed, obtaining detailed income statements and forecasts is critical to assess operational sustainability.
• Assess Future Financing Needs and Capital Structure: Investigate plans to strengthen equity or secure external funding to address ongoing negative equity and working capital deficits.
• Confirm No Undisclosed Contingent Liabilities or Legal Risks: Limited accounts narrative suggests minimal disclosures; further inquiry into potential liabilities or risks is advisable.