Company Number: 13133973

Analysis Date: 2025-07-29 18:39 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, reflected in persistent net liabilities and negative net current assets over multiple years. The financial position has deteriorated steadily since incorporation, indicating an elevated risk profile.

2. Key Concerns:

• Negative Net Assets: The company shows net liabilities of £89,921 as of 2024, worsening from £53,746 in 2023, indicating insolvency on a balance sheet basis.
• Negative Working Capital: Current liabilities exceed current assets by £142,082, raising liquidity risk and questions about the company’s ability to meet short-term obligations.
• Lack of Operational Scale: No employees reported and minimal fixed assets (£52,161) suggest limited operational activity and potential challenges in generating sustainable cash flows.

3. Positive Indicators:

• Regulatory Compliance: All statutory filings including accounts and confirmation statements are filed on time, indicating good governance in regulatory terms.
• Clear Management: The single director, Wendy Dan Wang, appears stable with no adverse records or disqualifications reported.
• Micro Entity Reporting: The company is categorized as micro, which reduces reporting complexity and cost, potentially easing administrative burdens.

4. Due Diligence Notes:

• Investigate the nature and valuation of fixed assets to assess recoverability and whether these assets are generating income or are encumbered.
• Review cash flow statements and bank statements (if available) to verify liquidity status beyond the balance sheet snapshot.
• Understand the business model viability given zero employees and ongoing losses, including reviewing contracts, leases, or other revenue streams.
• Clarify any contingent liabilities or related party transactions that might impact financial health.
• Confirm any financing arrangements or shareholder support that could mitigate solvency risks.