Company Number: 13740612

Analysis Date: 2025-07-29 13:41 UTC

1. Risk Rating: HIGH
   The company's financial position reflects very limited net assets (only £10 at the latest year end) and a negative working capital position, indicating significant solvency and liquidity risk. The minimal equity base and persistent current liabilities exceeding current assets raise concerns about the company's ability to meet short-term obligations and sustain operations without additional financing.

2. Key Concerns:

• Negative Net Current Assets: Both years show current liabilities (£13,354 in 2023) exceeding current assets (£10,280), resulting in negative net current assets (-£3,074 if prepayments/creditors considered; reported net current assets figure appears inconsistent), suggesting cash flow pressures.
• Minimal Shareholders’ Funds: Shareholders’ funds are negligible (£10 in 2023), indicating the company has almost no financial buffer to absorb losses or fund growth.
• Rapid Decrease in Current Assets: Current assets declined sharply from £46,843 in 2022 to £10,280 in 2023, while liabilities also decreased but remain high. This volatility could indicate unstable cash management or business difficulties.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with filing deadlines for both accounts and confirmation statements, reflecting good regulatory adherence.
• Active Website and Contact Details: The presence of an active website and clear contact information suggests operational legitimacy and transparency.
• Growing Workforce: Employee numbers increased from 1 to 3 in the latest year, which may indicate business expansion or increased operational activity.

4. Due Diligence Notes:

• Clarify Working Capital Figures: Investigate the apparent discrepancy between reported net current assets and balance sheet components, including the nature of prepayments and accruals.
• Cash Flow Analysis: Obtain detailed cash flow statements to assess liquidity trends and the company's ability to fund ongoing operations.
• Business Model Viability: Review contracts, client base, and revenue trends to evaluate operational sustainability given the limited asset base and small equity.
• Director Background and Related Party Transactions: Given sole control by Xxxxxx Xxxxxxxxname shown to subscribers, review any related party transactions or director loans that may impact financial stability.