Company Number: 13136423

Analysis Date: 2025-07-20 17:57 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net assets and net current liabilities, indicating solvency concerns. The micro-entity scale with minimal assets and increasing liabilities, combined with no employees and negative equity, raises significant financial stability risks.

2. Key Concerns:

• Solvency Risk: The net liabilities have worsened from £-327 in 2021 to £-1,118 in 2024, indicating an ongoing capital deficit and inability to cover liabilities with assets.
• Liquidity Concerns: Current liabilities substantially exceed current assets (£785 vs £10 in 2024), suggesting poor short-term liquidity and potential cash flow issues.
• Operational Stability: The company has no employees and minimal capital (£10 share capital), with no sign of increasing asset base or profitability, questioning the sustainability of ongoing operations.

3. Positive Indicators:

• Filings are up to date with no overdue accounts or confirmation statements, showing compliance with statutory reporting requirements.
• Directors have maintained consistent control since incorporation with no indications of disqualification or governance issues.
• The company is active and not undergoing liquidation or administration, suggesting ongoing business activity.

4. Due Diligence Notes:

• Investigate the nature of the company’s liabilities and creditor relationships to understand the causes of negative equity and possible contingent risks.
• Review any off-balance-sheet commitments or related party transactions that may impact financial stability.
• Assess business model viability and cash flow forecasting to determine if the company can generate sufficient revenue or requires capital injection.
• Confirm whether the directors have plans or have taken steps for financial restructuring or recapitalization.
• Explore the reason for the consistently minimal current assets and absence of employees to evaluate operational capacity.