Company Number: 13161224

Analysis Date: 2025-07-29 13:53 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by consistent negative net current assets and shareholders’ funds over multiple years, indicating liabilities substantially exceed assets. The scale of current liabilities compared to minimal current assets and cash suggests a high risk of inability to meet short-term obligations.

2. Key Concerns:

• Persistent negative net current assets (£53,546 in 2024) and shareholders’ funds (£47,661 negative) that have worsened year-on-year, signaling ongoing financial deterioration.
• Very low liquidity position with cash reserves of only £286 against current liabilities of £54,390, pointing to potential cash flow difficulties.
• Dependence on director financial support for going concern status as stated in the accounts, indicating operational sustainability is contingent on external funding rather than self-generated cash flow.

3. Positive Indicators:

• The company has filed accounts and confirmation statements on time, suggesting compliance with statutory filing requirements and no immediate regulatory concerns.
• Tangible fixed assets of £5,885 provide some asset backing, although modest relative to liabilities.
• The company has a single director with a stable appointment since incorporation, which may imply consistent management oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities to understand creditor composition and urgency of payments.
• Assess the director’s capacity and willingness to continue providing financial support, including any formal or informal arrangements.
• Review cash flow forecasts and business plans to evaluate prospects for improving operational cash generation and reducing reliance on external funding.
• Confirm if any contingent liabilities or off-balance sheet exposures exist that could exacerbate financial risk.
• Clarify the reason for the company’s significant accumulated losses and whether any strategic changes are underway to address these.