Company Number: 13194053

Analysis Date: 2025-07-20 14:19 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net current assets, very limited current assets against significant current liabilities, and minimal shareholder funds, indicating a high risk of liquidity and solvency issues.

2. Key Concerns:

• Negative working capital: Current liabilities (£12,351) substantially exceed current assets (£251), resulting in net current liabilities of £12,100. This gap suggests potential difficulty in meeting short-term obligations.
• Minimal equity buffer: Shareholders' funds remain at a nominal £100 since incorporation, offering no cushion against losses or liabilities.
• Lack of operational scale: The company has no employees and minimal turnover implied by micro-entity status, raising questions about ongoing viability and revenue generation.

3. Positive Indicators:

• Up-to-date filings: Accounts and confirmation statements are filed on time with no overdue reports, demonstrating compliance with statutory obligations.
• Directors with relevant roles and control: Both directors hold significant control and have defined occupations, potentially indicating committed management.
• Stability in fixed assets: Fixed assets have remained constant (£12,200) over two years, suggesting no asset disposals that might indicate distress.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities to assess repayment schedules and creditor risk.
• Confirm the company's revenue streams and future contracts or pipeline to evaluate operational sustainability.
• Review cash flow statements, if available, to understand liquidity beyond balance sheet snapshots.
• Assess directors’ plans for improving working capital or capital injections to mitigate solvency risk.
• Explore whether the fixed assets are tangible and usable for ongoing operations or if they are obsolete.