Company Number: 12737582

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

1. Risk Rating: HIGH
   The company exhibits significant financial distress, with persistent net liabilities, negative shareholders' funds, and substantial long-term debt. The absence of cash and ongoing losses heighten solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets: The company’s net assets stand at approximately -£16,800 as of the latest accounts, deteriorating from -£3,069 the previous year, indicating ongoing losses and erosion of equity.
• High Long-Term Debt: Creditors due after more than one year total over £81,000, primarily composed of director loans and finance leases, which may pressure cash flows given no current operational income or employees.
• No Operational Activity: Classified as dormant with zero employees and no reported turnover; this raises sustainability concerns and questions the business model or future viability.

3. Positive Indicators:

• No Overdue Filings: All statutory accounts and confirmation statements have been filed on time, demonstrating regulatory compliance and good governance discipline.
• Stable Tangible Assets: The company holds £40,000 in tangible fixed assets, which could provide some collateral value or underpin a restart of operations if capital is injected.
• Clear Ownership and Control: The significant control is well defined, with two main individuals holding shares and directorships, providing clarity on decision-making authority.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loans and finance lease obligations to assess repayment schedules and risk of default.
• Clarify the company’s business plan given its dormant status but substantial liabilities and assets; understand intentions for reactivation, sale, or liquidation.
• Review historical trading or operational activities prior to dormancy to identify causes of losses and assess potential for turnaround or recovery.
• Confirm no hidden contingent liabilities or pending legal actions that could further impair the company’s financial position.