Company Number: 13591366

Analysis Date: 2025-07-19 12:24 UTC

1. Risk Rating: HIGH
   The company shows persistent negative shareholders' funds and net current liabilities over multiple years, indicating solvency concerns. The cash balance is negligible relative to current liabilities, raising liquidity risk. The company’s financial position has deteriorated since inception with no signs of operational profitability or asset growth beyond a static investment.

2. Key Concerns:

• Solvency Risk: Shareholders’ funds remain negative (£-916k in 2024), with total assets less current liabilities also negative (£-915k), suggesting the company is technically insolvent on a balance sheet basis.
• Liquidity Issues: Minimal cash holdings (£48 in 2024) against current liabilities of £14,333 create a severe liquidity mismatch, indicating potential inability to meet short-term obligations.
• Operational Sustainability: The company is a holding company with an investment valued at £13,370 (cost basis) but no income statement disclosed, no audit performed, and no indication of revenue streams or business activities supporting operational costs.

3. Positive Indicators:

• The company is compliant with filing deadlines for both accounts and confirmation statements, indicating regulatory compliance and good governance in statutory reporting.
• The company has a sole director with no publicly disclosed disqualifications or governance issues.
• The investment asset is stable in value year-on-year (£13,370), which may provide some residual value.

4. Due Diligence Notes:

• Investigate the nature and recoverability of the investment asset (£13,370). Assess whether this represents a subsidiary or associate with potential upside or impairment risk.
• Clarify the source and nature of current liabilities (£14,333), including creditor identities and payment terms. Understand any related-party transactions or loans.
• Obtain and review any available management accounts or internal forecasts to assess cash flow projections and plans to address the negative net asset position.
• Confirm the company’s business model and any operational subsidiaries or activities that might generate revenue.
• Review any contingent liabilities or off-balance sheet exposures not disclosed in the accounts.