Company Number: NI681364

Analysis Date: 2025-07-20 15:41 UTC

1. Risk Rating: HIGH
   Justification: The company’s 2023 financials show substantial negative net current assets and net liabilities, indicating severe liquidity and solvency issues. The balance sheet reflects a net liability position (£-36,999), a deterioration from prior years. This raises significant concerns about the company's ability to meet short-term obligations and continue operations without external support.

2. Key Concerns:

• Solvency and Liquidity: Current liabilities (£48,348) far exceed current assets (£12,049) as of 2023, resulting in a negative working capital of approximately £-36,299. This suggests cash flow strain and inability to cover immediate debts.
• Operational Stability: The company reported zero employees in 2023 compared to four employees in 2022, which could indicate a shutdown of operational activity or significant downsizing, threatening business continuity.
• Fixed Assets Write-off: Fixed assets were reported as £13,412 in 2022 but reduced to zero in 2023, potentially indicating asset disposals or write-offs that may affect operational capacity or collateral value.

3. Positive Indicators:

• No Filing Overdue: Accounts and confirmation statements are filed on time, reflecting regulatory compliance and good governance in statutory reporting.
• Active Company Status: The company remains active and is not in liquidation or administration, indicating no formal insolvency proceedings have commenced.
• Experienced Director: The current director, Ms. Roselyn Kearns, has maintained position since incorporation, suggesting some continuity in leadership.

4. Due Diligence Notes:

• Investigate reasons behind the drastic increase in current liabilities and whether these are trade payables, loans, or other debts.
• Clarify the cause of the reduction to zero fixed assets in 2023 and its impact on the business model.
• Review cash flow statements and management accounts (if available) to assess ongoing liquidity and operational cash generation.
• Understand the business status given zero employees reported in 2023—whether operations have ceased, paused, or outsourced.
• Confirm any contingent liabilities or off-balance-sheet obligations not reflected in the micro-entity accounts.
• Explore director and shareholder relationships given multiple PSCs with significant voting rights, ensuring no conflicts affecting company stability.