Company Number: 12883292

Analysis Date: 2025-07-20 13:09 UTC

1. Risk Rating: HIGH
   The company exhibits a persistent negative net asset position and significant working capital deficits over multiple years, indicating solvency and liquidity concerns. While filings are up to date, financial performance raises red flags about operational sustainability.

2. Key Concerns:

• Negative Net Assets: The company’s net assets deteriorated from -£339 in 2021 to -£6,991 in 2024, signaling ongoing losses eroding shareholders’ funds.
• Working Capital Deficit: Consistent negative net current assets (e.g., -£10,511 in 2024) imply the company is unable to cover short-term liabilities with current assets, increasing liquidity risk.
• Lack of Profitability and Shrinking Fixed Assets: Fixed assets have decreased from £13,840 in 2020 to £3,520 in 2024, possibly reflecting asset disposals to cover cash needs or underinvestment, which may undermine operational stability.

3. Positive Indicators:

• Compliance with Filing Obligations: Accounts and confirmation statements are filed on time, indicating good regulatory compliance and governance discipline.
• Micro-Entity Status: The company qualifies as a micro-entity, which limits disclosure requirements but may also reflect a small operational scale with potentially lower complexity and risk.
• Stable Management: The current director has been in place since March 2023, and there is no indication of director disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate the causes of sustained losses and negative equity, including review of revenue streams, cost structure, and business model viability.
• Analyze cash flow statements and creditor payment terms to assess immediate liquidity pressures and risk of default.
• Review any related party transactions or director loans that could impact the financial position.
• Confirm if any contingent liabilities or off-balance-sheet arrangements exist despite the accounts’ statement of none.
• Assess the strategic plans or fundraising efforts by management to restore financial health.