Company Number: 13750335

Analysis Date: 2025-07-29 14:37 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position as of the latest financial year, indicating solvency issues. The significant level of long-term creditors far exceeds total assets, suggesting financial distress. Additionally, the overdue confirmation statement filing flags governance or compliance concerns.

2. Key Concerns:

• Negative Shareholders' Funds: Net assets declined to -£8,466 in 2024 from -£6,878 in 2023, reflecting accumulated losses and potential insolvency risks.
• High Long-Term Creditors: Creditors due after more than one year stand at £50,603 (2024), exceeding total assets and indicating heavy indebtedness and potential liquidity pressures.
• Overdue Confirmation Statement: The company has not filed its confirmation statement by the due date, which raises regulatory compliance and governance red flags.

3. Positive Indicators:

• Stable Operational Scale: The company remains micro in size with a consistent employee count (2 employees), implying controlled operational complexity.
• Tangible Fixed Assets: The company holds £36,460 in fixed assets, mainly motor vehicles and fixtures/fittings, which could potentially be leveraged or sold to alleviate financial pressure.
• No Indication of Formal Insolvency Proceedings: The company is active and not in liquidation, administration, or receivership, suggesting it continues trading despite financial challenges.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors to assess repayment obligations and likelihood of restructuring or defaults.
• Review cash flow statements and income data (not provided) to understand operational cash generation and ability to service debts.
• Clarify reasons behind the overdue confirmation statement filing and any associated penalties or risks affecting company reputation or operations.
• Examine director’s plans or strategies for returning the company to a positive equity position or managing creditor relationships.
• Verify the accuracy and completeness of asset valuations, particularly fixed assets, to assess liquidation value if needed.