Company Number: 13896293

Analysis Date: 2025-07-20 14:28 UTC

1. Risk Rating: HIGH
   The company’s financial structure reveals significant solvency and liquidity concerns. The fixed assets are fully offset by long-term creditors, leaving almost negligible net assets and working capital. This indicates a fragile financial position with little buffer to meet obligations or absorb shocks.

2. Key Concerns:

• Solvency Risk: The company shows fixed assets of £198,743 fully matched by long-term creditors of the same amount, resulting in net assets of only £579 in 2024 and a negative net asset position the prior year. This signals a highly leveraged balance sheet with minimal equity.
• Liquidity Constraints: Current assets are extremely low (£789 in 2024), barely covering short-term liabilities (£210), which points to very limited liquidity and potential cash flow difficulties in meeting immediate obligations.
• Operational Scale and Sustainability: With only one employee and micro-entity status, the business scale is very small and may lack diversification or operational resilience.

3. Positive Indicators:

• Timely Compliance: The company’s filings (accounts and confirmation statement) are up to date with no overdue submissions, indicating good regulatory compliance and governance discipline.
• Stable Asset Base: Fixed assets have remained stable at £198,743 over the past three years, suggesting some asset consistency rather than erosion.
• Single Controlling Shareholder: The presence of a single director and 75-100% controlling shareholder may facilitate swift decision-making and clear accountability.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors matching the fixed assets to understand the underlying financing arrangements and repayment risks.
• Review cash flow statements or bank statements (not provided) to assess actual liquidity and cash management practices.
• Clarify the business model and revenue generation given minimal current assets and employee count to evaluate operational viability.
• Validate no director disqualifications or adverse governance issues beyond the provided data.
• Confirm any contingent liabilities or off-balance sheet obligations that might exacerbate financial risk.