Company Number: 13062537

Analysis Date: 2025-07-20 13:48 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns evidenced by a large negative net asset position and current liabilities far exceeding current assets.

2. Key Concerns:

• Severe negative net assets (£-50,979) and negative net current assets (£-55,460) as of 31-Dec-2023 indicate the company is insolvent on a balance sheet basis.
• Current liabilities (£56,526) are substantially greater than current assets (£1,066), suggesting acute liquidity stress and potential inability to meet short-term obligations.
• Very limited share capital (£1) and accumulated losses reflected in a large deficit in the Profit & Loss reserve signal ongoing operational losses or write-downs eroding equity.

3. Positive Indicators:

• The company is still active and has no overdue filing deadlines, indicating compliance with statutory requirements.
• Turnover increased from £36,315 in 2020 to £90,641 in 2022, showing some revenue growth before the latest year’s accounts (though 2023 turnover data is missing).
• The director has acknowledged responsibilities and prepared accounts in line with small company exemptions, suggesting at least basic governance controls.

4. Due Diligence Notes:

• Investigate the cause and nature of the large current liabilities, particularly the £42,512 classified as "other creditors" to assess if these are trade payables, loans, or contingent liabilities.
• Review management accounts or cash flow forecasts to assess ongoing liquidity and ability to meet obligations given the significant working capital deficit.
• Clarify the latest trading performance for 2023 and post-year-end developments to understand whether losses are continuing or if any restructuring or refinancing has occurred.
• Assess director and shareholder plans for recapitalization or turnaround given the negative equity position.
• Confirm whether any related-party transactions or director loans contribute to the creditor balances.