Company Number: 13255507

Analysis Date: 2025-07-29 16:59 UTC

1. Risk Rating: HIGH
   The company exhibits persistent net liabilities and negative net current assets over the last three years, indicating ongoing solvency and liquidity issues. The very limited share capital (£1.00) and relatively small current assets compound concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Solvency Risk: Net liabilities increased from £2,016 in 2023 to £2,465 in 2024, showing deterioration in net asset value and suggesting the company is technically insolvent on a balance sheet basis.
• Liquidity Concerns: Negative net current assets (£1,715 in 2024) imply the company’s current liabilities exceed its current assets, potentially causing cash flow difficulties in meeting short-term debts.
• Operational Stability: The company remains a micro-entity with only two employees and minimal capital injection since incorporation in 2021. There is no indication of profitability or asset growth, which raises questions about sustainable operations.

3. Positive Indicators:

• Compliance: All statutory filings (accounts and confirmation statements) are up to date with no overdue returns or accounts, indicating management is maintaining regulatory compliance.
• Ownership and Control: The company has clear ownership with a single individual holding 75-100% shareholding and voting rights, which can facilitate quicker decision-making.
• Active Website and Contact Info: The company maintains an active online presence and customer contact points, which suggests operational engagement with its market.

4. Due Diligence Notes:

• Obtain and review the company’s profit and loss accounts and cash flow statements to assess operational performance and cash generation capacity, as these are not publicly filed for micro-entities.
• Investigate the nature and timing of current liabilities to determine if any are overdue or subject to enforcement action.
• Evaluate the directors’ plans to address the negative net asset position, including any intended capital injections or restructuring efforts.
• Review any contractual obligations or contingent liabilities that may impact future liquidity or solvency.