Company Number: 13261719

Analysis Date: 2025-07-20 18:25 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risks as of the latest financial year end. The 2024 accounts show a sharply negative net current assets position (-£31,865) and negative total net assets (-£32,208), a marked deterioration from positive net assets (£4,082) in 2023. This suggests the company is currently unable to meet short-term liabilities from available assets, indicating potential liquidity distress.

2. Key Concerns:

• Severe liquidity shortfall: Current liabilities have more than doubled to £33,324, while current assets have dropped dramatically to £1,459, causing negative working capital.
• Negative net assets: The company has moved from modest positive equity to a substantial deficit, undermining solvency and shareholder value.
• Minimal scale and operational footprint: As a micro-entity with only one average employee, limited fixed assets (£3,270), and low share capital (£100), the business may lack resilience and operational scale.

3. Positive Indicators:

• No overdue filings: Both accounts and confirmation statements are up to date, indicating compliance with statutory requirements.
• Active website and contact details: Presence of an operational website and contact information suggests ongoing business activity.
• Stable directorship and control structure: Directors have been consistent since incorporation and maintain clear ownership control, which can aid in decision-making and strategic continuity.

4. Due Diligence Notes:

• Clarify reasons for financial deterioration: Investigate causes behind the sharp increase in current liabilities and decline in current assets between 2023 and 2024.
• Review cash flow and creditor payment history: Assess whether the company is meeting obligations on time or experiencing payment delays or disputes.
• Examine any contingent liabilities or off-balance-sheet exposures: Look for any hidden risks that may compound solvency issues.
• Evaluate business model sustainability: With only one employee and limited assets, confirm the viability of the company's operations and revenue streams.
• Confirm no director disqualifications or governance issues: Although none are indicated, verify director conduct records to rule out regulatory risks.