Company Number: 13032253

Analysis Date: 2025-07-29 14:53 UTC

1. Risk Rating: HIGH
   The company shows significant and increasing negative net current assets and shareholders' funds, indicating a deteriorating solvency position. Current liabilities vastly exceed current assets, and cash on hand is minimal, raising serious concerns about liquidity and the ability to meet short-term obligations.

2. Key Concerns:

• Severe Negative Net Working Capital: The company’s net current liabilities increased from approximately £26k in 2022 to nearly £39k in 2023, signaling worsening liquidity risk.
• Accumulated Losses and Negative Equity: Shareholders' funds are deeply negative (£-38,697 in 2023), reflecting persistent losses or capital erosion with no indication of recent capital injections beyond a nominal £1 share capital.
• Reliance on Amounts Owed to Group Undertakings: The largest component of current liabilities (£37,720 in 2023) is due to group undertakings, which may suggest intercompany funding rather than external debt but also raises questions about financial sustainability if these balances are not formal loans with repayable terms.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with statutory accounts and confirmation statements, indicating compliance with regulatory filing requirements.
• Going Concern Stated by Directors: Although unsupported by financials, directors affirm no material uncertainty about going concern, which may reflect ongoing support from group entities or plans for remediation.
• Active Status with Experienced Board: The company has three directors appointed, including recent appointments, which may suggest active management attention.

4. Due Diligence Notes:

• Examine the nature and terms of amounts owed to group undertakings to assess whether these represent sustainable intercompany loans or potential liabilities needing repayment imminently.
• Review cash flow forecasts and any management plans addressing the worsening working capital deficits.
• Investigate whether there are any contingent liabilities or off-balance-sheet risks not captured in the accounts.
• Confirm the company’s revenue generation capacity and whether there are prospects for returning to profitability, given the absence of employees and minimal current assets.
• Verify director backgrounds and any related party transactions that could impact governance or financial transparency.