Company Number: 13481955

Analysis Date: 2025-07-29 16:27 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net assets and net liabilities over multiple years, indicating ongoing solvency concerns. Current liabilities exceed current assets significantly, pointing to liquidity challenges. The absence of an audit, while permitted, limits financial transparency.

2. Key Concerns:

• Negative Shareholders’ Funds: The company’s net assets were negative at £(6,156) in the latest financial year, deteriorating from prior years, suggesting accumulated losses and insolvency risk.
• Working Capital Deficit: Net current assets were negative at approximately £(4,794), indicating insufficient short-term assets to cover liabilities due within one year, raising liquidity concerns.
• Limited Financial Disclosure: As a micro-entity exempt from audit and filing only minimal accounts, there is limited financial detail available, restricting the ability to assess operational performance and cash flow adequacy.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statement filings are up to date with no overdue deadlines, demonstrating compliance with statutory requirements.
• Stable Ownership and Management: The director and significant shareholders have been consistent since incorporation, which may suggest stable governance and management continuity.
• Micro-Entity Status: The company’s small scale potentially limits exposure and complexity, which may be manageable with appropriate oversight.

4. Due Diligence Notes:

• Investigate the company’s cash flow statements and profit and loss accounts (not publicly filed) to understand operational cash generation and expenses.
• Clarify the nature and terms of long-term creditors (£14,760), as substantial non-current liabilities relative to assets heighten solvency risk.
• Assess any contingent liabilities or off-balance sheet commitments that could exacerbate financial strain.
• Confirm the director’s plans or strategies for returning the company to profitability and positive net asset position.
• Review any related party transactions given the small ownership base and potential for director/shareholder loans.