Company Number: 13109646

Analysis Date: 2025-07-29 20:02 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities increasing sharply from -£9,568 in 2023 to -£31,687 in 2024. The current liabilities far exceed current assets, indicating a critical working capital deficit and potential inability to meet short-term obligations.

2. Key Concerns:

• Severe Negative Net Assets: The company’s net liabilities have more than tripled year-over-year, signaling deteriorating financial health.
• Working Capital Deficit: Current liabilities (£32,287) substantially exceed current assets (£300), raising immediate liquidity issues.
• Single Director and Shareholder Control: Full control by one individual may increase governance risk, especially in absence of independent oversight or additional management.

3. Positive Indicators:

• No Overdue Filings: The company’s annual accounts and confirmation statements are filed on time, demonstrating regulatory compliance and administrative discipline.
• Micro Entity Status: The small scale may imply lower operational complexity and overheads.
• Continuity of Operation: Despite financial losses, the company remains active and has not entered liquidation or administration, suggesting ongoing business activity.

4. Due Diligence Notes:

• Investigate the nature and cause of the accumulated liabilities driving the negative net assets, including creditor composition and payment terms.
• Assess cash flow statements or bank statements (not provided) to understand actual liquidity and operational cash generation or burn rate.
• Review business model viability and future plans to address financial distress, including potential capital injections or restructuring.
• Confirm if any related party transactions or director loans contribute to liabilities.
• Validate that the director’s capacity and experience align with turnaround or sustainable business management given sole control.