Company Number: 13115431

Analysis Date: 2025-07-20 12:04 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks driven by persistent negative net current assets and minimal cash reserves despite modest positive net assets. The negative working capital position over multiple years indicates a strained ability to meet short-term obligations.

2. Key Concerns:

• Severe Liquidity Shortfall: Net current liabilities exceed £225,000 for the latest year with cash on hand only £100, signaling potential cash flow distress.
• Negative Working Capital and Overdue Payables: Current liabilities consistently surpass current assets by a wide margin, implying difficulty in paying suppliers and creditors promptly.
• No Employees and Limited Operational Data: Zero reported employees and lack of disclosed profit & loss information limit visibility into operational viability and revenue generation, raising sustainability questions.

3. Positive Indicators:

• Modest Positive Net Assets in Latest Year: The company moved from negative net assets (-£620) to a small positive net asset position (£1,256), which may indicate some improvement in capital structure or asset management.
• No Overdue Filings: The company is current on both accounts and confirmation statement filings, reflecting compliance with regulatory requirements to date.
• Experienced Control: One director holds full ownership and voting rights, ensuring clear decision-making structure without shareholder disputes.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities to assess whether these are short-term trade payables, loans, or other obligations and their maturity profiles.
• Request detailed profit & loss accounts and cash flow statements to better understand revenue streams, expenses, and operational cash generation.
• Review the fixed asset valuation methodology and liquidity, considering the substantial fixed assets (£227,000) relative to working capital deficits.
• Seek clarity on the absence of employees and how business operations are conducted (outsourcing, contract manufacturing, or dormant status).
• Confirm ongoing trading status, customer base, and contracts to evaluate business sustainability beyond balance sheet analysis.
• Evaluate director backgrounds for any adverse records or reputational risks beyond the provided data.