Company Number: 12770746

Analysis Date: 2025-07-29 18:59 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as reflected by negative net current assets and net liabilities at the latest year-end. The persistent negative equity position and working capital deficiency highlight material financial distress.

2. Key Concerns:

• Negative Working Capital: At 31 December 2023, current liabilities exceed current assets by £6,197, indicating potential difficulties meeting short-term obligations.
• Negative Net Assets and Shareholders’ Funds: The company’s net liabilities of £4,705 mark a continuation of historical losses, though an improvement from prior years. Persistent negative equity is a red flag for solvency risk.
• Small Scale and Limited Capital: Micro-entity classification with nominal share capital (£1.00) and only two employees may limit operational resilience and capacity to absorb adverse shocks.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statement are filed on time, suggesting regulatory compliance and governance attention.
• Stable Management Team: Leadership with consistent director appointments since incorporation, including a single controlling shareholder, may facilitate decisive management actions.
• Active Business Website: An operational website with a clear business focus on digital engineering services supports ongoing business activity.

4. Due Diligence Notes:

• Review Detailed Profit & Loss Data: The absence of P&L figures limits the ability to assess operational profitability or cash flow trends; obtain full financial statements to understand income, expenses, and cash generation capacity.
• Examine Creditors Composition and Terms: Understand whether current liabilities are trade payables, short-term loans, or accruals and their payment schedules to assess liquidity risk.
• Investigate Business Model Viability: Assess market position, client base, and revenue streams in the competitive digital services sector to judge operational sustainability.
• Confirm No Director Disqualification or Legal Issues: Verify the conduct records of directors to rule out governance risks.
• Evaluate Capital Injection Plans: Given the micro status and negative equity, ascertain if there are plans for capital infusion or restructuring.