Company Number: 13527934

Analysis Date: 2025-07-20 18:39 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to persistent negative net current assets, significant reduction in shareholders’ funds, and reliance on provisions for liabilities that heavily erode equity. These factors suggest potential solvency and liquidity challenges.

2. Key Concerns:

• Negative Net Current Assets: The latest accounts show current liabilities (£2,792) exceeding current assets (£2,263), indicating working capital deficits and potential cash flow problems.
• Substantial Provisions for Liabilities: Provisions amounting to £889 in 2024 (down from £2,897 in 2023) significantly reduce net assets and may reflect ongoing or uncertain obligations that could materialize into cash outflows.
• Declining Shareholders’ Funds: Shareholders’ equity has dropped sharply from £2,595 in 2021 to just £241 in 2024, raising concerns about the company’s ability to absorb losses or fund operations without external support.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, which suggests sound governance on compliance matters.
• Active Status and Director Control: The company remains active with a single director and controlling shareholder, which may facilitate swift decision-making.
• Micro Entity Filing: As a micro-entity, the company benefits from simplified reporting requirements, possibly reducing administrative burdens.

4. Due Diligence Notes:

• Investigate the nature and cause of the provisions for liabilities to understand associated risks and potential cash outflows.
• Review cash flow statements or bank records if available to assess liquidity beyond balance sheet snapshots.
• Examine the business model and client contracts to evaluate operational sustainability given the absence of employees and declining net assets.
• Confirm if the director’s remuneration or related party transactions might affect financial stability.
• Seek explanations for the sharp decrease in fixed assets and current assets over the last three years.