Company Number: 13821911

Analysis Date: 2025-07-20 16:25 UTC

1. Risk Rating: HIGH
   The company shows persistent net liabilities and negative shareholders’ funds over three consecutive years, indicating ongoing solvency concerns. Its current liabilities exceed current assets, reflecting a working capital deficit and potential liquidity stress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company has net liabilities of approximately £1,887 at the latest year-end, worsening from prior years, which signals an erosion of capital and potential inability to absorb losses or sustain operations without external support.
• Working Capital Deficit: The net current assets are negative (£-1,887), meaning current liabilities exceed current assets, posing short-term liquidity risks and potential cash flow difficulties meeting immediate obligations.
• Director Loans as Creditors: A significant portion of current liabilities (£1,648 of £1,887 total) is owed to the director. This related-party debt could imply reliance on director funding to maintain solvency rather than operational cash flow generation.

3. Positive Indicators:

• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are filed on time, indicating regulatory compliance and governance diligence.
• Single Director with Full Control: Clear ownership and control by one director may enable swift decision-making and potential access to further financial support if needed.
• Small Company Filing and Exemption from Audit: The company qualifies for small company exemptions, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loans: Are they repayable on demand? Interest bearing? What is the sustainability of this funding?
• Review the company’s cash flow forecasts and funding plans to understand how it intends to manage its negative working capital and net liabilities going forward.
• Assess the business model and operational performance given the SIC codes in IT and telecommunications; determine revenue streams and profitability outlook since turnover and profit/loss figures are not disclosed.
• Clarify the reason for persistent losses or negative reserves and whether there is an intention or plan to recapitalise the company.