Company Number: 13528719

Analysis Date: 2025-07-29 16:08 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with negative net current assets and shareholders’ funds as of the latest financial year. The company has a history of net current liabilities and negative equity, indicating financial distress.

2. Key Concerns:

• Solvency Risk: As of 31 July 2024, the company’s shareholders’ funds are negative (£-967), and net current assets are negative (£-2,664), suggesting the company’s liabilities exceed its assets and it may struggle to meet obligations.
• Liquidity Concerns: Cash reserves have fallen sharply from £3,225 (FY 2023) to £1,294 (FY 2024), with increased current liabilities, indicating potential cash flow difficulties.
• Operational Stability: The company has only one employee on average and limited tangible fixed assets. The company’s sector (SIC 96090) is diverse and unspecified, making it difficult to assess sustainability without further operational data.

3. Positive Indicators:

• Timely Compliance: The company’s accounts and confirmation statements are up to date with no overdue filings, demonstrating regulatory compliance and good governance on administrative matters.
• Single Controlling Shareholder: Mrs. Kirsty Edwards holds 75-100% control, which may facilitate swift decision-making and potentially additional capital support.
• Some Tangible Assets: The company holds tangible fixed assets valued at £1,697, which may provide some collateral or operational utility.

4. Due Diligence Notes:

• Review detailed income statement and cash flow statements (not provided) to understand the source of cash outflows and the operational profitability trajectory.
• Investigate the nature of liabilities due within one year (£3,958) to assess their urgency and possibility of renegotiation or restructuring.
• Clarify the business model and revenue sources given the broad SIC code "Other service activities not elsewhere classified" to evaluate sustainability and growth prospects.
• Confirm whether any intercompany transactions or director loans exist that may affect financial stability.
• Assess any contingent liabilities or off-balance-sheet risks that may exacerbate solvency issues.