Company Number: 12927401

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: HIGH
   The company demonstrates a very weak financial position with minimal net assets (£111 in 2023) and a significant reduction from prior years. The presence of long-term creditors exceeding current assets and a sharp decline in shareholder funds indicates elevated solvency risk.

2. Key Concerns:

• Deteriorating Net Assets: Net assets have fallen drastically from £1,803 in 2020 to £111 in 2023, signaling erosion of the company’s capital base.
• High Long-Term Liabilities: Creditors falling due after more than one year remain substantial (£1,610 in 2023), which may pressure cash flow and solvency if not managed carefully.
• Declining Workforce: The average number of employees dropped from 6 in 2022 to 2 in 2023, possibly indicating operational downsizing or instability.

3. Positive Indicators:

• Current Asset Coverage: Current assets (£2,120) exceed current liabilities (£399), providing some short-term liquidity buffer.
• Timely Filings: No overdue accounts or confirmation statements, suggesting compliance with regulatory filing requirements.
• Active Status: The company remains active and not under liquidation or administration.

4. Due Diligence Notes:

• Review detailed creditor composition, especially long-term liabilities, to assess repayment terms and potential refinancing risks.
• Investigate causes of sharp decline in net assets and shareholder funds over recent years.
• Examine operational cash flows and profitability trends to understand sustainability beyond balance sheet metrics.
• Clarify the reasons for the reduction in employee numbers and impact on operational capacity.
• Confirm the accuracy and completeness of micro-entity accounts given the minimal disclosures.