Company Number: 12518763

Analysis Date: 2025-07-29 14:12 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, as evidenced by negative net current assets and net liabilities of approximately £719 as of the latest accounts date. Such a financial position indicates an inability to cover short-term obligations from available current assets.

2. Key Concerns:

• Solvency Risk: The company has net liabilities (negative net assets), implying that total liabilities exceed total assets, which is a serious red flag for financial stability.
• Liquidity Issues: Current assets (£2) are insufficient to cover current liabilities (£721), indicating immediate cash flow problems and potential inability to meet short-term debts.
• Declining Financial Position: The company’s net assets have deteriorated from a positive £69 in 2021 to a negative £719 in 2024, showing a worsening trend over recent years.

3. Positive Indicators:

• Active Status and Compliance: The company is active, with no overdue filings for accounts or confirmation statements, demonstrating regulatory compliance and current operation.
• Stable Ownership and Management: The sole director and 100% shareholder is consistent, which may indicate clear governance and decision-making lines.
• Micro-entity Size: The company’s micro-entity status suggests a limited scale of operations, which may reduce complexity and operational risk.

4. Due Diligence Notes:

• Investigate the nature of current liabilities (£721) to understand creditor terms and any overdue obligations.
• Examine cash flow statements or bank records (if available) to assess short-term liquidity and operational cash generation.
• Clarify the reason(s) behind the persistent negative net asset position and any plans for recapitalization or restructuring.
• Confirm whether the company has any contingent liabilities or pending legal claims that could impact financial health.
• Understand the business model and revenue streams given the SIC codes (architectural activities and IT consultancy) and how these relate to financial performance.