Company Number: 14436742

Analysis Date: 2025-07-29 20:02 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as evidenced by persistent and increasing net liabilities and negative shareholders' funds. Current liabilities substantially exceed current assets, resulting in negative working capital that worsened from £-1,356 in 2023 to £-7,964 in 2024, indicating liquidity stress.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The net liabilities have increased markedly from £-1,356 in 2023 to £-7,014 in 2024. This indicates the company’s obligations exceed its assets, threatening its ability to meet creditor claims.
• Severe Working Capital Deficiency: Current liabilities (£8,567) significantly surpass current assets (£603) in 2024, suggesting immediate liquidity problems and potential difficulties in meeting short-term obligations.
• Limited Operational Scale and Lack of Audit: The company is micro-entity sized with only 1 employee and has not submitted a profit and loss account, limiting financial transparency. Limited operational scale may affect business sustainability and growth prospects.

3. Positive Indicators:

• Compliance with Filing Deadlines: Accounts and confirmation statements are filed on time, indicating regulatory compliance and governance discipline.
• Single Director and PSC Stability: A single director and sole person with significant control (PSC) who appears consistent and resident in the UK, reducing governance complexity.
• No Indication of Insolvency Proceedings: The company is active, not in liquidation or administration, which may suggest ongoing business operations despite financial challenges.

4. Due Diligence Notes:

• Investigate the underlying causes for the sharp increase in liabilities and negative net assets—whether due to operational losses, loans, or other financial obligations.
• Review cash flow statements and management accounts (if available) to assess real-time liquidity pressures and funding sources.
• Confirm the company’s business plan and prospects for returning to profitability or securing additional capital.
• Assess director’s capacity and plans to address financial distress given the micro-entity status and sole director structure.
• Verify absence of contingent liabilities or related party transactions that may exacerbate financial risks.