Company Number: 13586835

Analysis Date: 2025-07-20 19:15 UTC

1. Risk Rating: HIGH
   The company exhibits significant negative net asset positions in the latest accounts, indicating solvency concerns. The liabilities exceed assets by £442 as of 31 August 2023, worsening from a deficit of £1,768 in prior years. This negative equity suggests the company may struggle to meet its obligations without additional capital injection.

2. Key Concerns:

• Negative Net Assets: Consistent negative shareholders’ funds over three years highlight financial distress and potential insolvency risk.
• Minimal Current Assets: Very low current assets (£211 in 2023) compared to liabilities (£653) indicate liquidity constraints and potential cash flow issues.
• No Employees or Fixed Assets: The absence of employees and fixed assets raises questions about operational activity and the company’s ability to generate sustainable revenue.

3. Positive Indicators:

• No Overdue Filings: The company is current with statutory accounts and confirmation statement filings, suggesting basic regulatory compliance.
• Single Controlling Director: Full control by a single director with a stable background (lecturer) may indicate consistent management, although this can also concentrate risk.
• Industry Diversification: Activities span social work, management consultancy, and financial intermediation, which could provide diverse revenue streams if operational.

4. Due Diligence Notes:

• Investigate Revenue and Cash Flow: Financial statements lack profit and loss data; direct inquiry into turnover, income sources, and cash flow statements is essential to assess operational viability.
• Understand Nature of Liabilities: Clarify the composition of current liabilities and whether any debts are overdue or subject to enforcement actions.
• Assess Future Funding Plans: With negative equity and limited assets, determine if there are plans for capital injections or restructuring to restore solvency.
• Review Director’s Role and Related Party Transactions: Given single director control and lack of employees, verify if related party transactions or loans exist that may affect financial stability.
• Confirm Business Activity Status: The absence of employees and fixed assets may imply dormant or minimal trading; confirm current business operations and client engagements.