Company Number: 13790315

Analysis Date: 2025-07-20 16:46 UTC

1. Risk Rating: MEDIUM
   The company displays a very low net asset base (£165 as of 31 Dec 2023), a sharp decline from prior years (£3,950 in 2022 and 2021). While current liabilities are manageable relative to current assets, the significant long-term liabilities (£13,094 in 2023) have eroded equity substantially. This indicates some solvency strain, though no overdue filings or liquidation status are noted.

2. Key Concerns:

• Significant reduction in net assets and shareholders’ funds from £3,950 to £165 within one year, suggesting erosion of capital or accumulated losses.
• Long-term liabilities nearly equal to total assets less current liabilities, potentially indicating reliance on debt or creditor financing.
• Single employee operation and micro-entity status may reflect limited operational scale and resource constraints, impacting sustainability and growth prospects.

3. Positive Indicators:

• No overdue statutory filings or confirmations, demonstrating regulatory compliance and good governance discipline.
• Current assets exceed current liabilities, providing positive working capital and short-term liquidity buffer.
• Sole director and 75-100% controlling shareholder alignment may facilitate decisive management and control.

4. Due Diligence Notes:

• Review detailed composition and terms of long-term liabilities to assess repayment risks and creditor relationships.
• Investigate reasons for sharp decline in net assets and whether this is due to operating losses, asset write-downs, or shareholder withdrawals.
• Confirm cash flow trends and revenue generation to evaluate ongoing operational viability and funding needs.
• Assess director’s track record and capacity to manage and grow a micro-scale sales agency business.
• Verify absence of any contingent liabilities or off-balance sheet exposures not disclosed in the accounts.