Company Number: 12723128

Analysis Date: 2025-07-29 20:32 UTC

1. Risk Rating: HIGH
   The company’s financials as of September 2024 reveal a significant deterioration in net assets, moving from positive equity (£1,643) to a negative net worth (£-21,593). The net current liabilities position and absence of fixed assets indicate solvency concerns.

2. Key Concerns:

• Solvency Risk: The company shows net liabilities, with total liabilities exceeding assets by £21,593. This indicates an inability to cover obligations if liabilities were called upon.
• Liquidity Concerns: Current liabilities (£193,228) exceed current assets (£174,334), resulting in a negative working capital of £18,656, which signals potential short-term cash flow difficulties.
• Asset Base Erosion: The fixed assets line dropped from £140,420 in 2023 to £0 in 2024, which may reflect asset disposals or impairments. This weakens collateral backing and operational stability.

3. Positive Indicators:

• Filing Compliance: The company is up to date with both accounts and confirmation statement filings, showing regulatory compliance.
• Stable Directorship: Two directors have been in place since incorporation with no reported disqualifications or compliance issues.
• Micro-Entity Status: The company benefits from simplified reporting requirements, indicating a small scale operation which can be easier to manage.

4. Due Diligence Notes:

• Investigate the reason for the complete disappearance of fixed assets between 2023 and 2024. Determine whether these were sold, impaired, or transferred.
• Review the nature and maturity profile of the large current liabilities and any long-term debts to assess refinancing or repayment risks.
• Examine underlying cash flow statements or management accounts if available to understand liquidity management and if negative working capital is a temporary issue.
• Clarify business operations and revenue streams to assess operational sustainability given the asset and equity erosion.
• Confirm absence of any contingent liabilities or off-balance sheet obligations that may exacerbate financial risk.