Company Number: 12517760

Analysis Date: 2025-07-20 19:07 UTC

1. Risk Rating: HIGH
   Justification: The company’s net assets and working capital have sharply declined to near zero in the latest financial year, indicating very limited financial buffer. The micro-entity accounts show net current assets of only £1 and net assets of £1 as of 31 March 2024, down from £5,466 in the prior year and significantly lower than earlier years, signaling acute solvency and liquidity risk.

2. Key Concerns:

• Severe depletion of net assets: The company’s net assets have fallen from £18,400 in 2021 to just £1 in 2024, a worrying erosion of equity.
• Working capital constraints: Current liabilities are almost equal to current assets (£27,605 vs. £27,606), leaving negligible working capital to meet short-term obligations.
• Minimal share capital and small scale: Share capital remains nominal at £1, indicating limited equity investment and a very small capital base, which may constrain business resilience.

3. Positive Indicators:

• Compliance with filing requirements: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and good governance practices.
• Stable management: The same director has been in place since incorporation, providing continuity in leadership.
• Micro-entity status: The company’s small size limits reporting requirements, which may reflect a lean cost structure and focused operations.

4. Due Diligence Notes:

• Investigate the reasons behind the drastic decline in net assets and working capital in the latest year, including any unusual or one-off expenses or asset write-downs.
• Review cash flow statements (if available) or management accounts to assess liquidity trends and ability to meet short-term liabilities.
• Examine customer base, contracts, and revenue trends to determine operational sustainability given the asset depletion.
• Confirm no undisclosed liabilities or contingent risks exist that could further impair financial stability.
• Assess director’s plans for recapitalization or restructuring to restore financial health.