Company Number: 13113011

Analysis Date: 2025-07-20 11:13 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant and persistent negative net assets and net current assets, indicating insolvency risks. Current liabilities far exceed current assets with worsening deficits year-on-year, raising substantial concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Severe Negative Net Assets: Net assets have deteriorated from -£24,655 in 2020 to -£77,864 in 2023, signaling accumulated losses eroding shareholder equity.
• Negative Working Capital: Net current liabilities of -£76,064 at the latest year-end highlight liquidity challenges, with current liabilities nearly 90 times the current assets.
• Minimal Share Capital and Single Director: Share capital of only £1.00 with a single director who is also the secretary concentrates control and may limit operational resilience or governance robustness.

3. Positive Indicators:

• Active Status with No Overdue Filings: The company remains active and up to date with statutory filings including accounts and confirmation statements, showing compliance discipline.
• Micro-Entity Filing with Exemption from Audit: Simplified reporting reflects small scale and potential low overhead in compliance costs.
• Consistent Industry Classification: Focus on IT services and software development aligns with a growing sector, offering operational opportunities if financial issues are resolved.

4. Due Diligence Notes:

• Investigate the nature and cause of the large and growing current liabilities, including creditor types and payment terms.
• Assess cash flow statements or bank records (not provided) to understand liquidity and operational cash generation or burn.
• Review director’s plans or business strategies to address financial deficits and return to solvency.
• Explore related party transactions or loans that may affect financial stability.
• Confirm no director disqualifications or regulatory actions against key management.