Company Number: 14155020

Analysis Date: 2025-07-29 17:15 UTC

1. Risk Rating: HIGH
   Justification: The company is classified as dormant with minimal current assets (£1) against substantial current liabilities (£365,000), resulting in severely negative net current assets. This indicates an inability to meet short-term obligations. The balance sheet shows minimal net assets (£1), suggesting no operational activity or financial buffer.

2. Key Concerns:

• Solvency Risk: Current liabilities (£365,000) vastly exceed current assets (£1), indicating potential insolvency risk if the company were to trade.
• Liquidity Concerns: The company holds negligible cash or liquid assets, making it unable to cover debts or operational expenses.
• Operational Stability: The company is dormant, with no employees and no trading activity reported, raising questions about future operational viability or business plans.

3. Positive Indicators:

• Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue submissions, indicating good governance in terms of regulatory compliance.
• Clear Ownership: The ownership structure is transparent, with a single majority shareholder controlling 75-100% of shares, which could facilitate decision-making processes.
• No Auditor Requirement: As a dormant micro-entity, the company benefits from simplified reporting and audit exemptions, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature and origin of the £365,000 creditors balance—whether it reflects a loan, shareholder funding, or other liabilities.
• Clarify the company’s business plan or intended future trading activities given current dormant status and lack of operational assets.
• Review director history and conduct, especially given the recent change in directors and majority control transfer, to assess management stability and integrity.
• Confirm that no off-balance sheet liabilities or contingent risks exist despite the statement in accounts (footnote 2).
• Ascertain whether the fixed assets (£365,000) represent real estate holdings as per SIC 68100 classification and their valuation method.