Company Number: 13128447

Analysis Date: 2025-07-20 11:02 UTC

1. Risk Rating: HIGH
   The company exhibits a significant decline in net assets and working capital within the latest financial year, along with a substantial reduction in cash balances. These financial indicators point to elevated solvency and liquidity risks.

2. Key Concerns:

• Deteriorating Financial Position: Net assets have fallen sharply from £60,261 in 2023 to £15,836 in 2024, a decline of approximately 74%, signaling erosion of equity and potential balance sheet weakness.
• Liquidity Stress: Cash reserves dropped drastically from £98,076 in 2023 to £26,000 in 2024, with current liabilities only marginally lower. This tight cash position raises concerns about the company’s ability to meet short-term obligations.
• Absence of Revenue and Debtors: The latest accounts show zero debtors and no indication of turnover or revenue figures, which may imply a halt or sharp reduction in trading activities, threatening operational sustainability.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.
• Going Concern Statement: The director affirms the company is a going concern, suggesting management’s intention to continue operations.
• Low Share Capital and Controlled Ownership: Small share capital and a single director with 75-100% control may allow for agile decision-making and flexible management.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in net assets and cash—whether due to losses, asset disposals, or other one-off events.
• Confirm current trading status as absence of debtors and turnover data may indicate cessation or severe contraction of business.
• Review related party transactions and director remuneration in context of financial decline to assess governance and potential conflicts.
• Assess the company’s order book, contracts, and pipeline to verify operational viability going forward.
• Verify any off-balance sheet liabilities or contingent liabilities not disclosed in the accounts.