Company Number: 13108323

Analysis Date: 2025-07-20 12:12 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns with negative net assets and net current liabilities as of the latest financial year. This indicates an inability to meet short-term obligations from available current assets.

2. Key Concerns:

• Negative net assets of £3,992 and net current liabilities of £3,994 at 31 March 2024, reflecting financial distress.
• Rapid increase in average employees from 0 to 59 within the latest reporting period without a corresponding improvement in financial strength.
• Minimal share capital (£2) suggesting limited equity buffer to absorb losses or fund operations.

3. Positive Indicators:

• The company is active and has filed accounts and confirmation statements on time, indicating compliance with statutory filing requirements.
• No overdue filings or reported director disqualifications, which suggests governance and regulatory compliance are currently maintained.
• The business is classified as a micro-entity, simplifying reporting obligations and potentially reducing administrative overhead.

4. Due Diligence Notes:

• Investigate the nature and sustainability of the business activities given the sharp rise in employee count but ongoing negative net asset position.
• Review cash flow statements and detailed profit & loss data (not provided) to assess operational cash generation and reasons for negative working capital.
• Confirm the relationship and financial backing from directors/shareholders given the low share capital and negative equity.
• Understand the company's business model under SIC 64209 to evaluate revenue streams and potential for turnaround.
• Seek any off-balance sheet liabilities or contingent obligations that may exacerbate financial risk.