Company Number: 13936861

Analysis Date: 2025-07-29 14:25 UTC

1. Risk Rating: HIGH
   The company shows a significant decline in net assets from £33,387 in 2023 to a negative £1,650 in 2024, indicating insolvency risk. Additionally, current liabilities are reported at £16,777 against current assets of only £14,731, suggesting liquidity constraints.

2. Key Concerns:

• Negative Net Assets: The company has moved from positive shareholders’ funds to negative equity within one year, a strong indicator of financial distress.
• Liquidity Shortfall: Current liabilities exceed current assets, implying potential difficulties in meeting short-term obligations.
• Small Scale and Single Director: As a micro-entity with only one employee and controlled 100% by a single director, operational risk is concentrated and may lack resilience or governance oversight.

3. Positive Indicators:

• Compliance with Filing: Accounts and confirmation statements are up to date with no overdue filings, indicating compliance with regulatory obligations.
• Clear Ownership and Control: The sole director and 100% shareholder is identified, which can facilitate swift decision-making.
• Industry Focus: Operating in public relations and communications, a sector that can be agile and low capital intensive.

4. Due Diligence Notes:

• Investigate the cause of the substantial reduction in net assets and worsening liquidity between 2023 and 2024; review detailed income statement and cash flow data if available.
• Assess the company’s current trading status and ability to generate cash flow to meet liabilities, given the decline in working capital.
• Confirm if the director has provided any additional capital or financial support given the negative equity position.
• Review any contingent liabilities or related party transactions that might affect solvency.
• Verify the sustainability of business operations given the micro-entity status and limited resources.