Company Number: 13689919

Analysis Date: 2025-07-29 15:05 UTC

1. Risk Rating: HIGH
   The company exhibits persistently negative net current assets over the past three years, indicating ongoing liquidity issues. Net assets are very low and have barely improved since incorporation. Being a micro-entity with minimal financial buffers and a single employee increases operational risk.

2. Key Concerns:

• Negative working capital: Current liabilities exceed current assets by £4,165 in 2024, a persistent trend since 2021, suggesting potential difficulties in meeting short-term obligations.
• Very low net assets: Net assets stand at only £214 as of 2024, indicating minimal equity cushion against liabilities or financial stress.
• Single director and employee: The company relies heavily on one individual both for governance and operations, which heightens operational risk and potential continuity concerns.

3. Positive Indicators:

• Compliance: The company is up to date with both accounts and confirmation statement filings, indicating good regulatory compliance.
• No indication of insolvency proceedings: The company is active and not in liquidation or administration.
• Shareholder control clarity: The sole shareholder/director holds full control, which can facilitate swift decision-making.

4. Due Diligence Notes:

• Investigate cash flow statements and bank balances to understand liquidity dynamics beyond balance sheet snapshots.
• Review director’s plans for addressing working capital deficits and improving solvency.
• Assess any contingent liabilities or off-balance-sheet commitments that could exacerbate financial strain.
• Confirm the operational model’s sustainability given the company’s size and staffing.
• Verify if there are any related-party transactions or loans from the director that support liquidity.