Company Number: 13008248

Analysis Date: 2025-07-29 18:25 UTC

1. Risk Rating: HIGH
   The company shows net current liabilities and negative net assets over the last two years, indicating potential solvency concerns. Although classified as a micro-entity, the persistent negative net asset position is a significant red flag.

2. Key Concerns:

• Negative net assets: The balance sheet for 2023 reports net assets of -£4,943, worsening from -£3,399 in 2022, suggesting the company’s liabilities exceed its assets.
• Liquidity risk: Current liabilities exceed current assets in both 2022 and 2023, implying potential cash flow difficulties meeting short-term obligations.
• No employees and minimal share capital (£1): The absence of employees and nominal share capital may indicate limited operational capacity and financial resilience.

3. Positive Indicators:

• Timely filing: There are no overdue filings for accounts or confirmation statements, indicating compliance with statutory requirements.
• Active status: The company is currently active and not in liquidation or administration, which suggests ongoing operations.
• Increasing current assets: Current assets increased from £97,671 in 2022 to £147,671 in 2023, which may help liquidity if realized.

4. Due Diligence Notes:

• Investigate the nature and composition of current liabilities to assess whether they are short-term payables or accruals and their maturity profiles.
• Clarify the source and sustainability of current assets, particularly cash or receivables, to understand liquidity position.
• Review management’s plans or strategies to address the negative net asset position and improve financial stability.
• Confirm whether the company receives financial support from shareholders or related parties given the minimal share capital.
• Evaluate the operational model given zero employees reported and reliance on directors or outsourced services.