Company Number: 13951111

Analysis Date: 2025-07-20 15:17 UTC

1. Risk Rating: HIGH

Justification: The company exhibits a persistently negative net asset position, indicating accumulated losses exceeding its share capital. The available financial data shows net assets of -£4,991 as of 31 March 2024, worsening slightly from the prior year. This situation signals solvency concerns. The company's small scale and limited working capital exacerbate liquidity risk and operational sustainability questions.

2. Key Concerns:

• Negative Net Assets: The company has a deficit in shareholders’ funds (around -£5k), reflecting accumulated losses and potential solvency risk if this trend continues.
• Minimal Working Capital: Current liabilities (~£5k) are essentially matched by current assets, leaving very limited liquidity buffer for operational needs or unexpected expenses.
• Short Operating History and Scale: Incorporated in 2022 and employing only 2 people, the company’s financial track record and operational footprint are minimal, increasing uncertainty about its long-term viability and ability to generate profits.

3. Positive Indicators:

• Up-to-date Filing Status: All accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• No Auditor Qualification or Adverse Reports: The accounts were prepared under the small company regime, and no audit exceptions were noted.
• Clear Ownership and Control Structure: The PSC register shows transparent ownership with two corporate entities controlling the majority of shares and voting rights, which may provide some strategic support or funding potential.

4. Due Diligence Notes:

• Profit and Loss Details: The income statement was not filed; obtaining this is critical to understand revenue, expenses, and cash flow dynamics.
• Cash Flow Analysis: Investigate cash flow from operations to assess liquidity beyond balance sheet snapshots.
• Business Model and Contracts: Review the company’s business activities, client contracts, and pipeline given the SIC code (miscellaneous business support activities) for sustainability.
• Director Background: Confirm any potential personal guarantees or related party transactions with the directors and PSC entities.
• Future Funding or Capital Injection Plans: Given the negative equity, understanding plans to restore solvency or secure working capital is essential.