Company Number: 14152023

Analysis Date: 2025-07-29 20:59 UTC

1. Risk Rating: HIGH
   The company exhibits significant negative net current assets and net assets, indicating insolvency risks and potential inability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The 2024 accounts report current assets at £801 against current liabilities of £1,402, resulting in net current liabilities of £601, worsening from a net current liability of £61 in prior years.
• Negative Equity Position: Shareholders’ funds and net assets have deteriorated from £60 in 2023 to negative £600 in 2024, suggesting accumulated losses or capital erosion.
• Minimal Operational Scale: The company operates as a micro entity with only one employee and negligible asset base, raising questions about operational sustainability and financial resilience.

3. Positive Indicators:

• Compliance with Filings: Company accounts and confirmation statements are filed on time, indicating regulatory compliance to date.
• Single Director with Clear Record: The sole director is appointed since incorporation with no noted disqualifications or governance issues.
• No Indication of Liquidation or Administration: The company remains active and has not entered formal insolvency processes.

4. Due Diligence Notes:

• Investigate the nature and cause of the negative equity and worsening net current asset position, including any undisclosed liabilities or contingent risks.
• Review cash flow statements and trading performance to assess liquidity and ability to fund ongoing operations given minimal assets.
• Confirm whether external financing or shareholder loans support the business, and if so, on what terms and sustainability.
• Clarify the business model and revenue generation, given the small size and negative financial position, to evaluate operational viability.
• Examine any related party transactions or director loans that might impact financial stability.