Company Number: 13246732

Analysis Date: 2025-07-29 13:32 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in financial position within the latest reported year, moving from positive net assets of £13,222 in 2023 to negative net assets of £14,529 in 2024. This indicates an erosion of equity and potential insolvency risk.

2. Key Concerns:

• Solvency Risk: The company’s net current liabilities of £14,651 and negative net assets indicate it may not be able to meet its short-term obligations without additional funding.
• Liquidity Concerns: Current assets dropped sharply from £17,595 to £2,143 while current liabilities increased significantly, pointing to potential cash flow difficulties.
• Operational Stability: The average number of employees remained at one, and there is minimal fixed asset base, which may indicate limited operational scale and resilience.

3. Positive Indicators:

• The company is active and has complied with all filing deadlines, showing regulatory compliance and governance discipline.
• Ownership is concentrated with a single controlling shareholder, which may facilitate decisive management actions.
• The business operates in IT consultancy (SIC 62020), a sector with potential for growth and adaptability.

4. Due Diligence Notes:

• Investigate the underlying causes of the large increase in current liabilities and the sharp reduction in current assets over the year.
• Review management accounts or cash flow statements for recent periods to assess ongoing liquidity and operational performance.
• Assess whether the company has any external financing arrangements or shareholder support to address the deficit in net assets.
• Confirm no contingent liabilities or off-balance sheet obligations that may exacerbate financial strain.
• Evaluate the business plan and market conditions to determine if a turnaround or recovery is feasible.