Company Number: 13113561

Analysis Date: 2025-07-20 12:35 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position that has worsened over three years, indicating solvency concerns. Current liabilities exceed current assets by a substantial margin, raising liquidity risks. The company is a micro entity with limited operating scale and no audit oversight, increasing operational risk.

2. Key Concerns:

• Negative Net Assets: The company’s net assets declined from -£350 in 2022 and 2023 to -£2,180 in 2024, signaling accumulated losses and potential insolvency risk.
• Liquidity Shortfall: Current liabilities (£3,500) significantly exceed current assets (£1,037) as of 2024, implying difficulties meeting short-term obligations.
• Limited Financial Scale: The micro-entity status with minimal capital (£100 share capital) and only two employees restricts operational resilience and ability to absorb financial shocks.

3. Positive Indicators:

• Compliance Status: The company is active with all filings up to date, including accounts and confirmation statements, suggesting no immediate regulatory compliance issues.
• Stable Management: Directors have been consistent since incorporation with relevant professional backgrounds (accountant and engineer), which may support operational continuity.
• No Off-Balance Sheet Liabilities: The accounts disclose no off-balance sheet commitments, removing hidden obligations from view.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to assess risk of creditor actions or overdue payments.
• Review income and cash flow trends (not provided) to evaluate operational sustainability and ability to reverse negative equity.
• Confirm absence of related-party transactions or contingent liabilities that may exacerbate financial weakness.
• Assess any plans or recent capital injections by shareholders to improve solvency.
• Consider the directors’ statements or forecasts about future trading prospects and risk mitigation measures.