Company Number: 13079454

Analysis Date: 2025-07-29 19:33 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with persistent negative net assets and net current liabilities well in excess of current assets over multiple years. The micro-entity financial filings show consistent erosion of shareholder funds, indicating an inability to meet short-term obligations.

2. Key Concerns:

• Severe negative net assets and net current liabilities: The company shows a net liability position of approximately £29,883 as of the latest accounts, worsening year-on-year. This indicates the company is technically insolvent on a balance sheet basis.
• Extremely low current assets relative to liabilities: Current assets dropped from £480 in 2023 to only £12 in 2024, while current liabilities remained above £48,000, signaling critical liquidity issues and likely cash flow problems.
• Change in ownership and directorship coinciding with financial deterioration: The recent change in controlling shareholder and director in May 2025, following ongoing financial distress, may indicate restructuring or management challenges.

3. Positive Indicators:

• No overdue filings: The company is up to date with its annual accounts and confirmation statement filings, suggesting compliance with statutory requirements.
• Micro-entity status with limited employee base: With only one employee on average in 2024, operational costs might be minimal, potentially reducing cash burn.
• No indication of formal insolvency proceedings: The company remains active and not in liquidation, administration, or receivership as of the latest data.

4. Due Diligence Notes:

• Investigate the nature and timeline of liabilities to understand if these are trade payables, loans, or other creditor types and whether any restructuring discussions are ongoing.
• Review management plans or forecasts addressing the sustained negative equity and liquidity shortfall.
• Clarify reasons behind the name change and director/shareholder transition in May 2025, and assess any impact on operational continuity or strategic direction.
• Confirm whether there are contingent liabilities or related party transactions not reflected in accounts.
• Obtain cash flow statements and bank reconciliations if available to better assess short-term liquidity.