Company Number: 13658840

Analysis Date: 2025-07-20 19:03 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk evidenced by persistent net liabilities exceeding £6,900 for three consecutive years and current liabilities substantially outweighing current assets. There is a clear negative working capital position and negative net assets, indicating an inability to meet financial obligations from existing resources.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company’s net current liabilities have remained around £7,000, with net assets negative and no improvement from prior years, highlighting ongoing financial distress.
• Minimal Current Assets and Cash Reserves: Current assets are negligible (£285 in 2023), suggesting very limited liquidity to cover short-term liabilities (£7,264).
• Operational Sustainability: The company employs only one person and generates no apparent financial growth or profit, raising concerns about business viability. Lack of profit and reliance on director(s) funding or external support is likely.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with statutory filings, including accounts and confirmation statements, indicating regulatory compliance and governance discipline.
• Stable Ownership and Control: Sole control by Mrs. Katie Louise Cheetham, who is also the director, may facilitate timely decision-making and oversight.
• Micro Entity Status: As a micro entity, filing requirements are simplified, and the company benefits from reduced compliance costs.

4. Due Diligence Notes:

• Investigate the source of funding that supports ongoing operations given persistent negative equity and liabilities.
• Clarify the nature of the liabilities due within one year (£7,264) and whether these are trade creditors, director loans, or other obligations.
• Review business model and revenue streams to assess prospects for reversing losses and achieving positive cash flows.
• Confirm no undisclosed contingent liabilities or legal risks that could exacerbate financial instability.
• Evaluate the director’s plans for improving financial health or intentions regarding company continuation or restructuring.