Company Number: 13383025

Analysis Date: 2025-07-29 12:42 UTC

1. Risk Rating: HIGH
   Justification: The company’s balance sheet shows net liabilities of £3,907 as of the latest accounts, indicating negative net assets and a solvency concern. The current liabilities significantly exceed current assets, suggesting liquidity risk. The absence of fixed assets and employees raises questions about operational scale and sustainability.

2. Key Concerns:

• Solvency Risk: Negative net assets of £3,907 as at 31 May 2024, deteriorating from negative £2,583 the previous year, signals that liabilities exceed assets. This raises doubts about the company’s ability to meet its long-term obligations.
• Liquidity Concerns: Current liabilities (£3,735) far exceed current assets (£28), leading to a negative net working capital of £3,707, which suggests immediate cash flow difficulties.
• Operational Stability: No employees reported and no fixed assets held imply limited operational activity or a possibly dormant trading state despite active status. This may not be sustainable without external funding or changes in operations.

3. Positive Indicators:

• Compliance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue filings or penalties noted.
• Stable Governance: The director and secretary roles are held by the same individual, Charlotte Greene, with no disqualifications or adverse records indicated.
• Company Age: Incorporated in 2021 and still active, which suggests survival beyond the typical high failure rate of very new companies.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to understand the immediacy and enforceability of debts. Are these trade payables, loans, or related party debts?
• Clarify the company’s operational model given zero employees and fixed assets; determine revenue sources and business activity level.
• Review cash flow statements and any funding arrangements or shareholder support to assess ongoing liquidity and solvency prospects.
• Confirm whether the company is trading or effectively dormant despite active status, and understand future business plans or restructuring efforts.