Company Number: 13603130

Analysis Date: 2025-07-29 13:46 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk due to large negative net assets and net current liabilities, indicating inability to meet short-term obligations. The extent of net liabilities has increased substantially over three years, raising serious concerns about financial stability.

2. Key Concerns:

• Severe Negative Net Assets: The net assets position deteriorated from -£40,641 in 2021 and 2022 to -£65,417 in 2023, showing growing accumulated losses.
• Negative Working Capital: Net current liabilities stood at -£65,067 in 2023, meaning current liabilities far exceed current assets, posing liquidity risk.
• Single Director and Shareholder: The company is controlled entirely by one individual who is also the sole director, which may limit governance oversight and operational resilience.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with both accounts and confirmation statement filings, reducing regulatory compliance risk at this time.
• Micro-Entity Status: Operating as a micro-entity with minimal employees (1) and limited filing requirements reduces administrative burdens.
• No Indication of Insolvency Proceedings: The company is active and not in liquidation or administration.

4. Due Diligence Notes:

• Investigate the causes of the large and growing accumulated losses and negative equity to understand business sustainability.
• Review cash flow statements or bank information (if available) to assess liquidity beyond balance sheet snapshots.
• Understand the business model and revenue generation given the low current assets and significant trade or other payables implied by current liabilities.
• Assess the director’s plans for addressing solvency issues and potential need for capital injection or restructuring.
• Verify any contingent liabilities or related party transactions that may impact financial position.