Company Number: 13000036

Analysis Date: 2025-07-20 13:40 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and shareholders’ funds for the last two years, indicating insolvency risk. Current liabilities exceed current assets, suggesting liquidity concerns. The small scale and minimal asset base, combined with consistent losses, heighten operational and financial risk.

2. Key Concerns:

• Solvency: The company has negative net assets (£-2,384 as of 2024) and shareholders' funds, reflecting accumulated losses and potential inability to meet long-term obligations.
• Liquidity: Current liabilities (£7,500) substantially exceed current assets (£113), resulting in negative working capital and raising doubts about short-term cash flow sufficiency.
• Sustainability: The business has operated with minimal employees (average 1) and small fixed assets, with no indication of growth or profitability. The financial statements do not include a profit and loss account, limiting insight into operational performance.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, indicating regulatory compliance to date.
• No indication of director disqualifications or governance issues; the sole director has maintained continuous appointment since incorporation.
• The company benefits from micro-entity reporting exemptions, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the reasons for persistent losses and negative equity, including a review of profit and loss data if available.
• Assess the company’s cash flow management and any arrangements with creditors, particularly regarding the £7,500 current liabilities.
• Confirm the nature and terms of creditors’ claims, especially the £7,500 creditors falling due after more than one year, to understand long-term solvency risks.
• Clarify business strategy and trading outlook given the minimal asset base and employee numbers.
• Verify the absence of any contingent liabilities or disputes not disclosed in the accounts.