Company Number: 12526858

Analysis Date: 2025-07-29 14:25 UTC

1. Risk Rating: HIGH

The company’s financial data and operational profile indicate elevated risk primarily due to minimal asset base, very low net assets, absence of employees, and limited financial disclosures consistent with a micro-entity classification. The low net current assets (£602 as of 31 March 2024) relative to liabilities and negligible share capital (£1) suggest constrained financial flexibility and potential difficulties in meeting obligations as they arise.

2. Key Concerns:

• Liquidity and Solvency: Current assets barely exceed current liabilities, resulting in very limited working capital. This raises concerns about the company’s ability to cover short-term debts and operational expenses without additional funding.
• Operational Sustainability: No employees reported and no fixed assets indicate the company may have minimal or no ongoing operational activities, which questions the sustainability of its business model.
• Concentration of Control and Director Turnover: Ownership and control are concentrated fully (75-100%) in one individual appointed only recently (Feb 2024), replacing the previous director. This transition and concentrated control may affect governance and operational continuity.

3. Positive Indicators:

• Compliance and Filing: The company is current on statutory filings including accounts and confirmation statements, with no overdue returns, indicating compliance with regulatory requirements.
• Micro-entity Reporting: Utilization of micro-entity accounting provisions reduces administrative burden and suggests the company operates on a small scale as intended.
• No Indication of Insolvency Proceedings: The company is active and not in liquidation, administration, or receivership.

4. Due Diligence Notes:

• Investigate the nature of the company’s current business activities given the absence of employees and fixed assets.
• Review cash flow statements or bank statements (if available) to assess liquidity beyond balance sheet snapshots.
• Ascertain the reasons and implications of the director change in early 2024, including any impact on control, strategy, and financial management.
• Confirm whether there are any contingent liabilities or off-balance-sheet obligations not reflected in the micro-entity accounts.
• Evaluate any related party transactions or financial support agreements given the minimal share capital and limited working capital.