Company Number: 13022311

Analysis Date: 2025-07-20 14:40 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with net liabilities increasing from approximately £12,147 in 2023 to £19,129 in 2024. Current liabilities substantially exceed current assets, indicating poor liquidity and an inability to meet short-term obligations without external support.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities have worsened year-over-year, suggesting ongoing losses and erosion of capital.
• High Director’s Loan Account Liability: The largest part of current liabilities (£19,471) is due to the director’s loan account, indicating reliance on director financing rather than sustainable operational cash flow.
• Minimal Operating Scale and Cash Reserves: Cash on hand has fallen drastically from £10,237 in 2023 to £576 in 2024, representing a significant liquidity strain, compounded by virtually no trade debtors, which raises concerns about sales or revenue generation capability.

3. Positive Indicators:

• Up-to-Date Filing Compliance: The company has met all filing deadlines for accounts and confirmation statements, suggesting compliance with regulatory requirements.
• Single Director with No Disqualification: The sole director has no reported disqualifications or governance issues, which reduces regulatory risk.
• Diverse SIC Codes: The company is registered under multiple SIC codes including environmental consulting, real estate trading, IT services, and building completion, which may indicate diversified business activities.

4. Due Diligence Notes:

• Review detailed turnover and profit & loss account data not included in the summary to understand revenue trends and operational cash flows.
• Investigate the nature and terms of the director’s loan account to assess risks of repayment or further financial support.
• Clarify the company’s business model and reason for negative net assets despite diverse SIC codes, including any contingent liabilities or off-balance sheet items.
• Examine management plans or forecasts addressing the worsening financial position and liquidity, including potential capital injections or restructuring.
• Confirm no undisclosed related party transactions or liabilities exist that could affect solvency.