Company Number: 13836587

Analysis Date: 2025-07-29 12:41 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (£-1,329) and shareholders’ funds are also negative (£-1,489) as of the latest financial year-end. This indicates insolvency on a balance sheet basis, which raises significant concerns about the company’s ability to meet its obligations.

2. Key Concerns:

• Solvency: Negative net assets and shareholders’ funds suggest the company’s liabilities exceed its assets, indicating potential solvency issues.
• Liquidity: Current liabilities (£16,682) exceed current assets (£15,353), resulting in negative working capital (£-1,329). Additionally, very low cash balance (£12) suggests limited immediate liquidity to cover short-term obligations.
• Operational Stability: The company is very small (one employee, presumably the director), with limited financial resources and no audit requirement, which may impact its ability to sustain operations or grow in a competitive market such as book publishing.

3. Positive Indicators:

• The company is compliant with filing deadlines for both accounts and confirmation statements, indicating good regulatory compliance and governance practices.
• The director and significant shareholder is clearly identified, providing transparency on control and management.
• The company is active and relatively new (incorporated in 2022), which may imply potential for turnaround or growth if operationally managed well.

4. Due Diligence Notes:

• Investigate the nature and collectability of the debtors (£15,341) to assess if these represent realisable assets or potential bad debts.
• Review cash flow statements or management accounts (if available) to understand operational cash generation and funding sources.
• Assess any contingent liabilities or off-balance sheet commitments that could further impact solvency.
• Examine business plan and revenue projections to evaluate future sustainability in the book publishing sector.
• Consider director’s background and financial support capacity, given the small scale and current financial position.