Company Number: 12940570

Analysis Date: 2025-07-20 17:46 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits persistent negative net current assets (-£333) indicating liquidity issues, minimal net assets (£100), and very limited share capital (£100). These factors combined suggest a high risk of insolvency or financial distress.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£433) exceed current assets (£100) by a significant margin, indicating potential cash flow problems to meet short-term obligations.
• Limited Capital Base: The company’s share capital and net assets are extremely low (£100), limiting its financial buffer and ability to absorb losses.
• Operational Scale and Sustainability: With only one employee on average and minimal fixed assets, the company appears very small and possibly reliant on limited resources, raising concerns about its long-term operational viability.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements; last accounts and returns were filed on time.
• Active Status: The company is currently active and not in liquidation or any insolvency process.
• Clear Ownership and Management: The appointment and resignation of directors are documented and current director controls majority ownership, indicating governance clarity.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess immediate payment obligations and creditor relationships.
• Review cash flow statements (if available) or bank statements to confirm liquidity position beyond balance sheet snapshots.
• Assess business model and revenue generation capacity given minimal assets and staffing to understand operational sustainability.
• Evaluate any contingent liabilities or off-balance sheet risks that may not be apparent from micro-entity accounts.
• Consider background checks on directors and PSCs for any regulatory or legal issues that could affect company stability.