Company Number: 13555856

Analysis Date: 2025-07-19 12:41 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity concerns as evidenced by persistently negative net current assets and net liabilities of approximately £7,941 as of the last two financial years. This indicates an inability to meet short-term obligations from current assets.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities exceed current assets substantially (£110 vs. £8,051 in 2023), indicating poor liquidity and potential cash flow problems.
• Persistently Negative Shareholders’ Funds: Shareholders’ funds are negative and deteriorated slightly from 2022 to 2023, which raises questions about capital adequacy and ongoing operational viability.
• Limited Financial Data and Micro-Entity Status: As a micro-entity, the company provides minimal financial disclosures, restricting a full assessment of profitability, cash flow, and operational metrics.

3. Positive Indicators:

• Active Status and Compliance: The company is active with no overdue filings, indicating regulatory compliance and governance discipline.
• Stable Employment: Maintains a small but stable workforce of 2 employees, which suggests ongoing operations at a minimal scale.
• Single Controlling Person: Clear ownership structure with one PSC holding 75-100% shares and voting rights, reducing governance complexity.

4. Due Diligence Notes:

• Examine Cash Flow and Profit & Loss Details: Request full financial statements beyond micro-entity filings to assess profitability, cash generation, and sustainability.
• Investigate Nature of Current Liabilities: Understand the composition and maturity profile of the current liabilities to evaluate imminent payment obligations and refinancing risks.
• Management Plans for Capital Injection or Recovery: Clarify if there are plans to address the negative net assets or any external funding to improve solvency.