Company Number: 13538661

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

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net current assets and shareholders' funds over multiple years, indicating ongoing insolvency risk. Current liabilities substantially exceed current assets, and cash balances are minimal and declining, suggesting liquidity constraints.

2. Key Concerns:

• Negative Working Capital: The company shows net current liabilities of £2,263 as at 31 July 2024, worsening from prior years, indicating inability to cover short-term obligations with current assets.
• Cumulative Losses: Shareholders' funds are negative £2,264, reflecting accumulated losses and erosion of equity base, raising solvency questions.
• No Employees and Limited Operations: The company reported no employees in the latest year, and limited financial activity is evident, raising concerns over operational sustainability and revenue generation capacity.

3. Positive Indicators:

• No Overdue Filings: The company is current with statutory accounts and confirmation statements, indicating compliance with filing requirements and regulatory formalities.
• Single Controlling Director and PSC: Ownership and control are clearly consolidated under a single individual, potentially enabling agile decision-making.
• Established Accounting Policies: The financial statements follow recognized accounting standards (FRS 102), ensuring consistency in reporting.

4. Due Diligence Notes:

• Investigate the nature and cause of the persistent creditor balances and whether any payment plans or creditor negotiations exist.
• Review the company’s business model and revenue streams given the lack of employees and minimal cash flow, to assess operational viability.
• Confirm if there are any related party transactions, director loans, or off-balance sheet liabilities that could impact financial health.
• Assess director’s plans for turnaround or funding injections to address negative equity and liquidity deficiencies.
• Verify if there is any contingent or deferred tax liability not reflected that could exacerbate solvency issues.