Company Number: 13803198

Analysis Date: 2025-07-29 20:33 UTC

1. Risk Rating: HIGH
   The company demonstrates significant negative net assets and shareholders' funds, indicating an ongoing capital deficiency. Despite current assets exceeding current liabilities, the presence of substantial long-term creditors pushes net assets into negative territory, heightening solvency risk.

2. Key Concerns:

• Persistent Negative Equity: Net assets remained negative (£-28,071 in 2022, improving only slightly to £-14,499 in 2023), reflecting accumulated losses or liabilities exceeding assets.
• Long-Term Liabilities: Creditors due after one year are substantial (£49,756 in 2023), suggesting reliance on long-term debt which may impact future cash flows and solvency.
• No Employees and Limited Operational Data: Zero employees reported for 2022 and 2023 raises questions about operational capacity and sustainability of the business model, especially for a management consultancy that typically requires skilled personnel.

3. Positive Indicators:

• Current Assets Cover Current Liabilities: Positive net current assets (£35,247 in 2023) suggest the company can meet short-term obligations, indicating decent liquidity in the near term.
• Up-to-date Filings: Accounts and confirmation statements are filed on time with no overdue penalties, showing regulatory compliance and good governance practices.
• Single Controlling Shareholder/Director: Concentrated ownership by Mr. Ian McCullagh (75-100% shares and voting rights) may allow for agile decision-making and clear accountability.

4. Due Diligence Notes:

• Examine Nature of Long-Term Creditors: Investigate the terms, counterparties, and repayment schedules of the £49,756 long-term liabilities to assess refinancing or default risk.
• Review Cash Flow Statements: Obtain detailed cash flow data to confirm liquidity and ability to service debts given negative equity.
• Assess Business Model Viability: Clarify how the company operates without employees and how it generates revenue in the management consultancy sector; review client contracts and pipeline.
• Director’s Financial Support: Determine if the director or shareholder provides financial support or guarantees given negative net worth and operational scale.
• Confirm No Undisclosed Related Party Transactions: Given concentrated ownership, verify transactions with related parties to ensure transparency and arm's length dealings.