Company Number: 12445182

Analysis Date: 2025-07-29 17:09 UTC

1. Risk Rating: MEDIUM
   The company shows ongoing net current liabilities and minimal net assets, indicating potential liquidity constraints. However, it remains active, compliant with filing deadlines, and maintains a modest positive net asset position, suggesting limited but not critical financial risk at this stage.

2. Key Concerns:

• Negative Working Capital: The company has consistently reported net current liabilities (e.g., £994 in 2025), raising concerns about its ability to meet short-term obligations from current assets.
• Low Shareholders’ Funds: Shareholders’ equity is very low (£1,035 in 2025), which limits the company’s capacity to absorb losses or fund growth internally.
• Director Loans and Tax Liabilities: The presence of director loans (noted as a creditor in 2025 at £773) and significant taxes and social security creditors (£15,390 in 2025) suggest cash flow pressures and reliance on related party financing.

3. Positive Indicators:

• Timely Compliance: The company’s accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance and governance in this respect.
• Active Status with Stable Management: The company remains active since incorporation in 2020 with a single consistent director, which may imply operational continuity and clear accountability.
• Modest Increase in Net Assets: The net assets improved from £121 in 2024 to £1,035 in 2025, showing some positive movement in equity despite ongoing working capital challenges.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans and their impact on liquidity and solvency.
• Review cash flow statements and forecasts to assess the company’s ability to manage and improve working capital.
• Examine tax liabilities and payment history to ensure no risk of enforcement or penalties.
• Understand the company’s business model and revenue streams given the SIC code indicating financial intermediation “not elsewhere classified,” to evaluate operational sustainability.
• Confirm any contingent liabilities or off-balance sheet risks not visible in the summary data.