Company Number: 13655079

Analysis Date: 2025-07-29 18:57 UTC

1. Risk Rating: MEDIUM
   The company shows modest net asset values indicating some equity buffer, but recurring negative net current assets and rising current liabilities signal potential liquidity pressures. Absence of employees and reliance on director loans also raise operational sustainability questions.

2. Key Concerns:

• Liquidity Strain: Negative net current assets of £5,842 at 2024 year-end, although improved from prior years, indicate short-term liabilities exceed current assets, posing a risk to meeting immediate obligations.
• Increased Current Liabilities: Current liabilities nearly doubled from £15,901 in 2023 to £30,688 in 2024, driven largely by accrued liabilities and deferred income, which may suggest cash flow timing issues.
• Operational Capacity: The company reported zero employees over the last reported year, which could imply reliance on directors or subcontractors, potentially affecting operational stability and scalability.

3. Positive Indicators:

• Positive Shareholders’ Funds: The company maintains net assets of £35,283, providing a modest equity cushion despite liquidity constraints.
• Compliance and Filing Status: The company is up to date with statutory filings and accounts, showing no overdue returns or accounts, indicating regulatory compliance and governance discipline.
• Related Party Support: The presence of director loan accounts indicates potential internal financial support during liquidity challenges.

4. Due Diligence Notes:

• Investigate the nature and timing of accrued liabilities and deferred income to assess whether these are short-term timing differences or indicative of operational cash flow issues.
• Review contracts and operational arrangements to understand how the company delivers services with zero employees and whether this model is sustainable.
• Assess director loan terms and amounts to evaluate the extent of internal financial reliance and any associated risks.