Company Number: 13103060

Analysis Date: 2025-07-20 12:06 UTC

1. Risk Rating: HIGH
   The company exhibits persistent net current liabilities and negative net assets over multiple years, indicating ongoing solvency issues and a risk that it may not meet its short-term obligations.

2. Key Concerns:

• Solvency Risk: The net liabilities have increased from approximately -£1,786 in 2020 to -£8,681 in 2024, reflecting deteriorating financial health and insufficient equity to cover liabilities.
• Liquidity Concerns: Current liabilities consistently exceed current assets, with a negative working capital position worsening from -£1,426 in 2020 to -£8,321 in 2024, suggesting cash flow difficulties.
• Operational Sustainability: The company has only one employee (the director) and minimal share capital (£1.00), combined with ongoing losses, which may challenge long-term viability without additional capital infusion or operational improvements.

3. Positive Indicators:

• The company is current on all filing requirements (accounts and confirmation statements), indicating compliance with regulatory deadlines.
• The director has acknowledged responsibilities in the accounts, and there is no indication the company is in liquidation or under any formal insolvency procedure.
• The company has a specialist activity classification (recovery of sorted materials), which could imply a niche market position.

4. Due Diligence Notes:

• Investigate the company's cash flow projections and plans to address negative working capital and net liabilities.
• Assess any contingent liabilities or off-balance-sheet risks not disclosed in the micro-entity accounts.
• Clarify the business model sustainability and whether the director or any PSC plans to inject additional capital or restructure operations.
• Review related party transactions or director loans that might affect financial stability.
• Verify if there are any outstanding disputes, legal proceedings, or regulatory issues beyond the accounts data.