Company Number: 13723101

Analysis Date: 2025-07-29 17:51 UTC

1. Risk Rating: HIGH
   The company’s financials show a significant negative net current asset position and net liabilities, indicating potential solvency issues. The absence of employees and minimal current assets also raise liquidity concerns.

2. Key Concerns:

• Negative Net Current Assets: The 2023 accounts report current liabilities (£7,649) vastly exceeding current assets (£1), resulting in net current liabilities of £7,648, which is a critical liquidity red flag.
• Negative Net Assets and Shareholders’ Funds: The company shows net liabilities of £6,297, reflecting erosion of capital and an inability to cover all obligations with available assets.
• No Employees and Minimal Operational Footprint: The company has no employees and nominal fixed assets (£1,501), which may question operational viability and sustainability of business activities.

3. Positive Indicators:

• Active Status and Up-to-Date Filings: The company is active with no overdue accounts or confirmation statements, demonstrating regulatory compliance in terms of filings.
• Single Director with Significant Control: Clear and stable management structure with one director who exercises significant influence, potentially facilitating swift decision-making.
• Exemption under Small Companies Regime: The company benefits from micro-entity reporting provisions, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature and reason for the significant current liabilities and assess whether these are trade payables, loans, or other obligations.
• Clarify the company’s business model and revenue-generating activities given minimal assets and zero employees.
• Review cash flow statements if available and inquire about funding sources or shareholder support to cover liabilities.
• Confirm whether the director or related parties have provided guarantees or loans to support liquidity.
• Assess any contingent liabilities or off-balance sheet commitments that could impact financial stability.