Company Number: 12700831

Analysis Date: 2025-07-20 15:40 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by consistently negative net assets and net current liabilities exceeding current assets. The balance sheet shows net liabilities of approximately £31,333 as at 30 June 2024, which indicates an inability to meet short-term obligations from current assets. This points to a high risk of financial distress.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company has net current liabilities of £31,333 and negative shareholders' funds by a similar amount, which worsened from previous years. This highlights a critical solvency risk.
• Low Cash Reserves Relative to Liabilities: Cash on hand is only £1,358 compared to current liabilities of £32,941, raising liquidity concerns for ongoing operational cash flow needs.
• Lack of Detailed Profit and Loss Information: No income statement is filed or publicly available, limiting visibility on profitability or operational cash generation, which increases uncertainty about sustainability.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with its accounts and confirmation statement filings, reducing regulatory risk.
• Stable Director Appointment: The sole director has been in position since incorporation, suggesting consistency in management.
• Small Employee Base: With an average of 3 employees, the company may have a lower fixed cost base, potentially aiding financial flexibility.

4. Due Diligence Notes:

• Obtain detailed profit and loss and cash flow statements to assess operational performance and cash generation capacity.
• Investigate the nature and timing of current liabilities to understand if they include overdue creditor payments or short-term borrowings.
• Clarify the reasons behind persistent net liabilities and negative equity, including any shareholder loans or related party transactions.
• Review the business model and market conditions to evaluate if the negative financial position is due to start-up losses or structural issues.
• Confirm any contingent liabilities or off-balance sheet obligations that may exacerbate financial risk.