Company Number: 13177295

Analysis Date: 2025-07-29 17:15 UTC

1. Risk Rating: HIGH
   The company exhibits critical solvency concerns with net liabilities reported (£9,006 negative net assets), and a significant long-term creditor balance exceeding total assets. Negative shareholder funds and minimal current assets relative to short-term liabilities indicate a distressed financial position.

2. Key Concerns:

• Persistent negative net assets and shareholder funds worsening from prior year, reflecting ongoing losses or capital erosion.
• Large long-term liabilities (£219,776) exceeding fixed assets, suggesting over-leverage and potential difficulties in meeting obligations.
• Extremely low liquidity with current assets of only £47 against current liabilities of £184,745, raising immediate cash flow risk.

3. Positive Indicators:

• The company is current on statutory filings (accounts and confirmation statement), indicating compliance with regulatory requirements.
• Fixed assets appear stable year-over-year, implying no recent impairment or disposals.
• Sole director and significant controller are consistent, reducing governance complexity.

4. Due Diligence Notes:

• Clarify nature and terms of long-term creditors to assess refinancing risk and repayment obligations.
• Investigate source of negative reserves and absence of profit or cash inflows despite owning significant fixed assets.
• Review business plan and cash flow forecasts to understand how the company intends to restore solvency and liquidity.
• Confirm that no contingent liabilities or pending legal actions exacerbate financial risk.
• Assess director’s capacity and plans for recapitalization or restructuring given sole control.