Company Number: 13452257

Analysis Date: 2025-07-29 14:13 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, evidenced by persistent negative net assets and high current liabilities relative to minimal current assets. The micro-entity scale and absence of employees suggest limited operational capacity. The overdue-free filing status is positive, but financial fundamentals indicate elevated risk.

2. Key Concerns:

• Negative Shareholders’ Funds: The company’s shareholders’ funds are negative (£-15,761 in 2024), indicating an erosion of equity and potential insolvency risk.
• Poor Liquidity Position: Current liabilities (£194,345) vastly exceed current assets (£470), resulting in a severely negative working capital position of £-193,875, highlighting liquidity stress and potential difficulty meeting short-term obligations.
• Lack of Operational Scale: The company has no employees and limited current assets, suggesting minimal ongoing business operations or revenue generation, raising questions about sustainability.

3. Positive Indicators:

• Timely Compliance: The company’s accounts and confirmation statements are filed on time, indicating good regulatory compliance and governance discipline.
• Fixed Assets Base: The company holds fixed assets valued at £362,362, which could provide some collateral value or be leveraged to improve financial stability.
• Stable Directorship: The presence of consistent directors and PSCs since incorporation shows stable management and control structure.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets to assess their liquidity and potential for monetization in stress scenarios.
• Review the company’s cash flow statements and underlying business model to understand how it plans to meet its short-term liabilities given the poor working capital position.
• Obtain management commentary or strategic plans to verify whether the company is in a restructuring phase or has commitments for capital injection to restore solvency.
• Confirm the absence of contingent liabilities or pending legal issues that could exacerbate financial risks.
• Assess the relationship and transactions between the two major shareholders who also serve as directors, to identify any related party risks.