Company Number: 13976063

Analysis Date: 2025-07-20 13:51 UTC

1. Risk Rating: HIGH
   The company shows persistent net liabilities and negative shareholders' funds, with limited current assets and increasing current liabilities. It is a dormant entity with no employees and minimal operational activity, indicating a high risk of insolvency if trading were to commence or continue.

2. Key Concerns:

• Negative net assets: The company’s net liabilities worsened from -£680 in 2023 to -£1,286 in 2024, signaling deteriorating financial health.
• Negative working capital: Current liabilities (£1,224) significantly exceed current assets (£100) as of March 2024, implying liquidity constraints.
• Dormant status with no operational activity: The company filed dormant accounts and reported zero employees, raising questions about operational viability and revenue generation prospects.

3. Positive Indicators:

• Compliance with filing obligations: Accounts and confirmation statements are up to date with no overdue filings, suggesting good governance in statutory compliance.
• Limited operational history: Incorporated in 2022, the company is relatively new, which may mean early-stage development and potential for future growth if capitalized appropriately.
• Clear ownership and control structure: Two directors with equal shareholding and control, providing straightforward governance and decision-making lines.

4. Due Diligence Notes:

• Investigate reasons for increasing current liabilities and negative net assets despite dormant status—possible contingent liabilities or related party transactions.
• Assess the business plan and funding strategy to understand how the company intends to achieve operational status and financial sustainability.
• Review director backgrounds and any related party transactions given the concentration of control and potential exposure to risks from associated entities.