Company Number: 12848059

Analysis Date: 2025-07-19 11:53 UTC

Risk Rating: HIGH

Justification: The company’s financials show a drastic decline in net assets and the presence of significant long-term liabilities exceeding current assets, indicating solvency risk. The net assets fell from £32,768 in 2023 to only £1,421 in 2024, primarily due to a substantial increase in creditors falling due after one year (£55,806 in 2024 vs £21,445 in 2023). This suggests the company may be heavily reliant on long-term debt or creditor financing, raising concerns about its ability to meet obligations.

---

Key Concerns

1. Severe Decline in Net Assets: Net assets have plummeted from £32,768 in 2023 to £1,421 in 2024, signaling a potential erosion of shareholder equity and financial stability.
2. High Long-Term Creditors: Creditors falling due after one year increased sharply to £55,806, nearly matching total assets less current liabilities (£57,227), indicating significant long-term liabilities that may pressure solvency.
3. No Employees and Limited Operational Scale: The company reports zero employees and minimal fixed assets, which may raise questions about operational sustainability and business model viability.

---

Positive Indicators

• Current Assets Exceed Current Liabilities: Net current assets remain positive at £41,445 in 2024, implying the company can currently meet short-term obligations.
• Timely Filing and Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance practices.
• Established Market Presence: Active website with a niche focus on charitable and third-sector organisations suggests a defined market position.

---

Due Diligence Notes

• Investigate Nature of Long-Term Creditors: Detailed review needed on the composition of the £55,806 creditors falling due after one year to assess repayment terms and risks.
• Examine Profit and Loss Accounts: Financial data provided lacks P&L information; analysis of profitability and cash flow trends is necessary to understand operational health.
• Assess Director Appointment Dates: New director appointed after the latest financial year end (May 2025) — confirm the roles and any changes in corporate governance or strategic direction.
• Understand Business Model and Revenue Streams: Limited fixed assets and no employees raise questions about how services are delivered; verify outsourcing or subcontracting arrangements.
• Confirm Absence of Contingent Liabilities: Check notes to accounts for any off-balance-sheet liabilities or guarantees that could impact financial standing.

---