Company Number: 13040980

Analysis Date: 2025-07-20 12:23 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities as of the latest accounts date and a persistent negative working capital position. The classification as a non-trading micro entity with minimal current assets and high current liabilities increases risk exposure.

2. Key Concerns:

• Solvency Risk: The 2024 financial year shows net liabilities of £400, reversing a prior small positive net asset position; current liabilities exceed current assets by approximately £266,000, indicating inability to cover short-term obligations.
• Liquidity Issues: Consistently minimal current assets (£100) against substantial current liabilities (~£266,000) over several years suggest chronic liquidity constraints and potential cash flow difficulties.
• Operational Status: The SIC code 74990 (Non-trading company) implies the company is not actively generating revenue, which raises questions about sustainability and ongoing operational viability.

3. Positive Indicators:

• Compliance: The company is active and up to date with filing statutory accounts and confirmation statements, with no overdue filings or penalties noted.
• Governance: Directors are established individuals with no reported disqualifications, and the company maintains a stable management structure.
• Financial Reporting: Accounts are prepared under applicable micro-entity standards and have been formally approved by the board, indicating adherence to regulatory requirements.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets (£265,581) to assess their liquidity and realizable value given the negative net assets position.
• Clarify the reason for the company's non-trading status and expected future business plans or restructuring efforts.
• Review any off-balance sheet liabilities or contingent liabilities that may exacerbate financial risk.
• Confirm the identity and role of the shareholder(s) with significant control, including any related party transactions.
• Assess whether the company receives external funding or support given the negative working capital and lack of trading income.