Company Number: NI684301

Analysis Date: 2025-07-29 14:23 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as it has net liabilities of £1,594 as at 31 May 2025, with negative shareholders’ funds of £1,694. The persistence of net current liabilities and a negative net asset position over multiple years indicate financial distress. The absence of trade debtors and a decline in current liabilities from £6,720 to £1,594 is positive but likely reflects a reduction in trading activity rather than improved liquidity. The company has no employees currently, which may signal operational downsizing or cessation.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Deficit: The company has been reporting net liabilities since at least 2024, indicating erosion of capital and potential insolvency risk.
• No Trade Debtors or Revenue Recognition: The latest accounts show no trade debtors or revenue, suggesting minimal or no trading activity during the 2025 financial year.
• Director Changes and Control: A complete change of directors occurred in March 2024, with the appointment of a sole director whose occupation is listed as "Embroiderer," which may imply a change in strategic direction or difficulties in management continuity.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, indicating adherence to regulatory obligations.
• Reduction in Current Liabilities: Current liabilities have decreased significantly from £6,720 to £1,594 year-on-year, which may reduce immediate liquidity pressure.
• No Overdue Filings or Insolvency Status: The company is active and not subject to liquidation or administration proceedings, which suggests it has not yet triggered formal insolvency processes.

4. Due Diligence Notes:

• Investigate the underlying reasons for the negative net asset position and whether there are any plans or capital injections to restore solvency.
• Clarify the operational status of the business given the absence of trade debtors and employees in the latest year.
• Review the circumstances and impact of the director resignations and the profile of the new director to assess management stability and strategic outlook.
• Assess any related-party transactions highlighted by amounts owed to group undertakings and their effect on the company’s financial position.
• Confirm the company’s revenue and cash flow generation capacity going forward, especially given the printing industry classification with no active trading reflected.