Company Number: 13556171

Analysis Date: 2025-07-29 12:41 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in financial position within the latest financial year, moving from positive net assets of £640 in 2023 to a substantial net liability of £20,563 in 2024. The considerable increase in current liabilities, largely due to directors’ loan accounts, raises solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company’s net current liabilities have grown dramatically to £21,979, indicating a severe working capital shortage and potential inability to meet short-term obligations.
• Substantial Increase in Directors’ Loan Account: Directors’ loans increased from approximately £3,062 in 2023 to £23,448 in 2024, which may reflect reliance on director funding to sustain operations and could pose a risk if not repayable on demand.
• Lack of Operating Activity and Employees: The accounts note no employees and no detailed turnover information, suggesting limited or no operational revenue generation, which questions the sustainability of ongoing business activities.

3. Positive Indicators:

• Timely Filing Compliance: The company is compliant with filing deadlines for both accounts and confirmation statements, mitigating regulatory risk.
• No Audit Requirement: Being a small company with exemption from audit reduces administrative burden.
• Established Management: Directors and PSC appear stable, with no disqualification records evident.

4. Due Diligence Notes:

• Investigate the nature and terms of the directors’ loans, including repayment schedules and whether these loans are interest-bearing or unsecured.
• Obtain detailed turnover and profit & loss statements to assess revenue generation and operational viability.
• Clarify the company’s business model and service activities under SIC 96090 to understand its market position and sustainability.
• Review any off-balance-sheet liabilities or contingent liabilities not disclosed in the accounts.
• Confirm absence of any director misconduct or regulatory issues beyond public records.