SET IN CLOUDS LTD

Executive Summary

Set In Clouds Ltd exhibits high solvency risk due to negative net assets and net current liabilities despite compliance with filing requirements. The company operates at a very small scale with no employees and limited financial resources, raising concerns about operational sustainability. Further due diligence on liquidity, business operations, and management plans is recommended before considering investment.

SET IN CLOUDS LTD - Analysis Report

Company Number: 13207854

Analysis Date: 2025-07-29 14:26 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and net assets as of the most recent financial year, indicating solvency concerns. The micro-entity nature and lack of employees suggest limited operational scale and resources.

2. Key Concerns:

• Solvency Risk: Negative net assets (£-139) and net current liabilities indicate the company may struggle to meet short-term liabilities.
• Operational Stability: Zero employees and minimal financial activity over multiple years raise questions about sustainable business operations.
• Financial Transparency and Scale: Micro-entity status and exemption from audit limit financial scrutiny; the small share capital (£1) and minimal assets suggest limited capital buffer.

3. Positive Indicators:

• Compliance: Accounts and confirmation statement filings are up to date with no overdue filings.
• No Formal Insolvency Proceedings: The company is active with no liquidation, administration, or receivership reported.
• Established Director: The sole director has been consistent since incorporation with no negative conduct records presented.

4. Due Diligence Notes:

• Investigate the reasons for deteriorating net assets from positive in 2022 to negative in 2025.
• Review detailed cash flow or bank statements to assess liquidity beyond reported balance sheet figures.
• Clarify the company’s business model and revenue streams given the SIC code for internet retail but no employees and minimal assets.
• Confirm whether any related party transactions or contingent liabilities exist that could impact financial position.
• Assess director’s plans or external funding arrangements to address the negative net asset position.