Company Number: 13620380

Analysis Date: 2025-07-20 13:11 UTC

1. Risk Rating: MEDIUM
   The company shows persistent negative net current assets indicating short-term liquidity concerns, but it remains solvent overall with positive net assets supported by fixed assets. Lack of employees and reliance on a single director also add operational risk.

2. Key Concerns:

• Liquidity Risk: The company has negative net current assets (£-28,262 in 2024), meaning current liabilities exceed current assets, which may impair its ability to meet short-term obligations.
• Debt Structure: Significant long-term creditors (£110,924) relative to net assets, highlighting a leveraged position that may strain cash flows.
• Operational Sustainability: Zero employees and no audit suggest a minimal operational footprint which could indicate reliance on external arrangements or limited business activity, raising concerns about business continuity.

3. Positive Indicators:

• The company is active and filings (accounts and confirmation statements) are up to date, indicating compliance with statutory obligations.
• Net assets have improved from £771 in 2021 to £19,568 in 2024, demonstrating gradual equity growth.
• Fixed assets remain stable (~£159k), presumably real estate, supporting asset backing for liabilities.

4. Due Diligence Notes:

• Investigate the nature and terms of the £110,924 long-term creditors to assess repayment schedules and covenants.
• Clarify the operational model given no employees: is the company managed by the director alone or outsourced?
• Review cash flow statements and profit & loss accounts (not filed publicly) to understand revenue streams and expense structure.
• Confirm if there are any contingent liabilities or related party transactions impacting financial health.
• Assess valuation and liquidity of fixed assets in case of distress sale.