Company Number: 13608850

Analysis Date: 2025-07-20 17:37 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk due to a marked deterioration in net assets and working capital within the latest financial year. The net liabilities position and sharp increase in current liabilities raise immediate concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Solvency Decline: Net assets dropped from positive £4,698 in 2023 to negative £24,498 in 2024, signaling erosion of shareholder equity and potential insolvency.
• Negative Working Capital: Current liabilities (£39,670) far exceed current assets (£9,169) as of 2024, a reversal from a positive working capital position in prior years. This imbalance indicates liquidity stress.
• Concentration of Control: Ownership and control appear concentrated in a small number of individuals/entities, which may increase governance risk, especially given the recent director changes.

3. Positive Indicators:

• Filing Compliance: All statutory accounts and confirmation statements are filed on time, indicating good compliance with regulatory deadlines.
• Micro-entity Status: The company benefits from simplified filing requirements and presumably lower operational complexity given its classification and single employee.
• Recent Director Appointment: Appointment of a new director and secretary in 2023 may reflect attempts at strengthening management oversight.

4. Due Diligence Notes:

• Investigate the nature and cause of the significant increase in current liabilities from £1,312 in 2023 to £39,670 in 2024, including any overdue debts or related party transactions.
• Review cash flow statements and bank reconciliations (not provided) to assess liquidity and ability to meet immediate obligations.
• Confirm the financial and operational relationship between the company and its controlling entities/persons, including any loans or guarantees.
• Assess the business model viability and revenue generation, given the negative equity and recent director turnover.
• Examine any contingent liabilities or off-balance sheet exposures that may exacerbate financial risks.