Company Number: 13209953

Analysis Date: 2025-07-29 14:26 UTC

1. Risk Rating: HIGH

The company shows a persistently negative net asset position, which is a significant solvency concern. Current liabilities are modest but the existence of creditors due after more than one year exceeding total assets less current liabilities indicates structural funding gaps. Limited cash reserves relative to liabilities and very small equity base further heighten risk.

2. Key Concerns:

• Negative net assets reported for the last two years, with shareholders' funds being negative (£-8,813 as of 2025), indicating accumulated losses and potential insolvency.
• Long-term creditors (£12,570 in 2025) substantially exceed net assets, suggesting reliance on external funding that may be unsustainable.
• Extremely limited operational scale with only one employee (the director) and minimal share capital (£1), raising questions about business capacity and resilience.

3. Positive Indicators:

• Company is active and current with filings (accounts and confirmation statements), indicating regulatory compliance.
• Cash balance, though modest (£4,156), is positive and the company maintains some net current assets.
• The director holds full ownership and control, potentially allowing for agile decision-making.

4. Due Diligence Notes:

• Review detailed creditor terms, especially the nature and maturity of the long-term liabilities to assess refinancing risk.
• Investigate the company’s trading performance and cash flow forecasts to evaluate operational sustainability beyond the balance sheet snapshot.
• Confirm any contingent liabilities or off-balance sheet obligations not visible in abridged accounts.
• Assess director’s plans for recapitalisation or restructuring given the negative equity position.
• Consider the market environment for cleaning services and the company’s competitive positioning given its micro size.