Company Number: 13168763

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

1. Risk Rating: HIGH
   The company exhibits significant negative net assets and net current liabilities, indicating ongoing solvency and liquidity issues.

2. Key Concerns:

• Persistent Negative Net Assets: The company’s net assets have deteriorated from -£2,474 in 2021 to -£19,202 in 2024, suggesting accumulated losses and erosion of shareholder equity.
• Negative Working Capital: Current liabilities significantly exceed current assets each year, with net current liabilities of -£19,202 in 2024, implying difficulty in meeting short-term obligations.
• Minimal Share Capital and Cash Reserves: Share capital is nominal (£1), and cash on hand is very low (£1,810), which limits financial flexibility and may constrain operations or ability to service creditors.

3. Positive Indicators:

• Filing Compliance: The company is up to date with both accounts and confirmation statement filings, indicating regulatory compliance and good governance on this front.
• Active Status and Continued Operation: Despite financial distress, the company remains active and has maintained a stable employee base (2 employees) through the latest reporting period.
• No Off-Balance Sheet Liabilities: Absence of disclosed off-balance sheet commitments reduces hidden risk exposure.

4. Due Diligence Notes:

• Investigate the nature and cause of large current liabilities and whether these include overdue payables or loans at risk of default.
• Review cash flow statements (not provided) to assess operational cash generation or reliance on external funding.
• Examine plans or forecasts from management for returning the company to profitability or recapitalization.
• Assess any contingent liabilities or potential creditor actions given the financial position.
• Verify director and shareholder intentions regarding continued funding or restructuring.