Company Number: 13261414

Analysis Date: 2025-07-20 17:57 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (shareholders' funds are negative and worsening), significant long-term liabilities exceeding current assets, and no operational employees, indicating elevated solvency and liquidity risks.

2. Key Concerns:

• Negative Net Assets: Net assets declined to -£4,075 as of 31 March 2024, indicating the company’s liabilities exceed its assets, a classic solvency red flag.
• Significant Long-Term Creditors: Creditors due after more than one year total £269,764, which is substantially higher than current assets (~£274k), raising concerns about the ability to meet long-term obligations.
• No Employees / Operational Activity: The company reported zero employees and no income statement filed, suggesting minimal or no active trading, which questions operational sustainability.

3. Positive Indicators:

• Timely Filings: Both accounts and confirmation statements are filed on time, indicating compliance with statutory obligations.
• Stable Current Assets: Current assets remain stable around £274k, mostly debtors, which may represent receivables or related party balances.
• Single Experienced Director and PSC: Control consolidated under a single director and PSC potentially simplifies governance and decision-making.

4. Due Diligence Notes:

• Clarify Nature of Long-Term Creditors: Investigate the composition and terms of the £269,764 creditors due after one year to assess repayment risk and whether these are related party loans or external debt.
• Review Cash Flow and Income Streams: Obtain detailed cash flow statements and income information to confirm if the company generates sufficient cash to service debts.
• Operational Activity Verification: Confirm whether the company is actively trading or holding assets only; the absence of employees and income statement may indicate dormancy or asset management only.
• Director Background Check: While no disqualifications are evident, verifying the director’s background and financial standing could provide insights into governance quality.