Company Number: 13247421

Analysis Date: 2025-07-20 13:01 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities and minimal cash reserves, indicating a high risk of inability to meet short-term and long-term obligations.

2. Key Concerns:

• Negative Net Assets: The company’s net assets deteriorated from a positive £380 in 2023 to negative £912 in 2024, signaling erosion of equity and financial stability.
• Insufficient Cash Reserves: Cash on hand has fallen sharply from £3,781 in 2023 to just £422 in 2024, while current liabilities remain higher than cash, suggesting potential liquidity stress.
• Director Loans as Debt: The long-term creditor balance consists entirely of loans from directors (£1,334 in 2024), indicating reliance on insider financing rather than external funding, which may not be sustainable.

3. Positive Indicators:

• No Overdue Filings: The company is current with Companies House filings (accounts and confirmation statements), indicating compliance with regulatory requirements.
• Active Status and Website: The company is active, has a functioning website, and a stable director with 100% ownership, which supports operational continuity.
• Small Company Reporting: Utilizes small company exemptions, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans, including repayment schedules and any potential for capitalisation.
• Review cash flow forecasts and upcoming obligations to assess short-term solvency and liquidity risk in detail.
• Clarify the reasons for the significant drop in cash and net assets between 2023 and 2024, including any extraordinary expenses or operational issues.
• Confirm absence of contingent liabilities or off-balance-sheet exposures not visible in the accounts.
• Assess the business model viability given zero employees and minimal assets, and understand how services are delivered operationally.