Company Number: 13253293

Analysis Date: 2025-07-20 17:36 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, as evidenced by persistent negative net assets and net current liabilities over multiple years. The scale of the shareholder deficit relative to minimal share capital highlights capital erosion and financial distress.

2. Key Concerns:

• Solvency Risk: The company has reported net liabilities exceeding £5,600 at the latest year-end, with negative net current assets indicating an inability to cover short-term obligations from current assets. This deteriorating balance sheet position over four years suggests ongoing losses and capital depletion.
• Liquidity Concerns: Cash balances have drastically declined from £5,911 at incorporation to £0 in the latest accounts, severely limiting the company’s ability to meet immediate liabilities (£5,783 current liabilities at 31 March 2024). Debtors are minimal and unlikely to remedy cash shortfalls.
• Operational Stability: Limited financial data with no profit and loss statement provided restricts insight into operational cash flows or profitability. However, the worsening net liabilities and absence of significant assets or equity raise questions about business sustainability and ongoing viability without external financing or capital injection.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines for accounts and confirmation statements, indicating adherence to statutory requirements.
• Ownership and control are concentrated with a single director and significant shareholder, potentially allowing for decisive management actions or recapitalization if required.
• The company operates within a defined SIC code (82990 - other business support activities), a sector that can have low fixed asset requirements, which may reduce exposure to asset impairment risk.

4. Due Diligence Notes:

• Obtain full profit and loss accounts and cash flow statements to assess operational performance, revenue trends, and cash generation capability.
• Investigate the nature of current liabilities and creditor terms to evaluate short-term financial obligations and any risk of default or enforcement actions.
• Review director’s report or management commentary (if available) for strategic plans addressing the financial deficits and liquidity challenges.
• Confirm any external funding arrangements, guarantees, or related party transactions that may impact financial stability.
• Verify if there are any pending regulatory or legal risks given the company's financial position.