Company Number: 12498300

Analysis Date: 2025-07-29 13:55 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets but declining equity and persistent current liabilities exceeding current assets in recent years. The micro-entity scale and lack of employees suggest limited operational scope, which may pose sustainability and liquidity challenges.

2. Key Concerns:

• Liquidity Position: Current liabilities (£8,925 in 2024) significantly exceed current assets (£1,459), resulting in a negative net working capital of -£7,466, indicating potential short-term cash flow stress.
• Declining Net Assets: Net assets dropped from £6,463 in 2023 to £1,496 in 2024, suggesting erosion of shareholder funds and possible operational losses or increased liabilities.
• Lack of Operational Scale: No employees reported over the past two years and minimal fixed assets imply limited business activity or capacity to generate consistent revenue, raising concerns about sustainability.

3. Positive Indicators:

• Compliance with Filings: No overdue accounts or confirmation statements, indicating regulatory compliance and good governance in terms of statutory obligations.
• Stable Director and Control Structure: Single known director and 75-100% ownership by the same individual provide clear accountability and decision-making authority.
• No Indication of Insolvency: The company remains active with no signs of liquidation or administration, and micro-entity reporting aligns with its size.

4. Due Diligence Notes:

• Investigate causes of the significant negative net current assets despite positive net assets, including creditor composition and payment terms.
• Review detailed profit and loss or cash flow statements if available to assess operational performance and cash generation capabilities.
• Confirm the nature of business activities given the absence of employees and minimal assets, to understand revenue streams and sustainability.
• Assess the director’s plans for addressing liquidity constraints and restoring equity levels.
• Verify absence of related party transactions or contingent liabilities not reflected in micro-entity accounts.