Company Number: 14616992

Analysis Date: 2025-07-29 18:25 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (2023) with limited operating history. While it reports positive net current assets and shareholders’ funds, a large portion of current liabilities consists of directors’ current accounts, which may reflect shareholder loans rather than third-party debt. The absence of turnover and profit/loss data limits full assessment.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£491,730) are nearly equal to current assets (£524,370), leaving a thin net working capital margin (£32,640). Cash reserves are modest (£59,312) relative to liabilities, potentially constraining short-term obligations.
• Concentration of Control and Funding: The sole director and majority shareholder (Miss Casey Michaels) controls 75-100% of shares and voting rights, with significant director loans (£481,550) on the balance sheet. This raises questions about reliance on insider funding and governance independence.
• Limited Financial Disclosure and Trading History: Accounts are unaudited and exempt from audit, with no income statement filed. The company has operated for just over one year, so financial performance and sustainability remain unproven.

3. Positive Indicators:

• The company has met all filing deadlines promptly with no overdue accounts or confirmation statements, indicating regulatory compliance.
• Net current assets and positive shareholders’ funds show the company is not in immediate financial distress.
• Tangible fixed assets exist, albeit small, indicating some investment in operational infrastructure.

4. Due Diligence Notes:

• Clarify the nature and terms of the director’s current account balance (£481,550): is this a loan, and what are the repayment terms? Assess the risk if this funding is withdrawn.
• Obtain or review income statement and cash flow data once available to assess operational profitability and liquidity trends.
• Investigate customer concentration and debtor collectability given that trade debtors form a large portion of current assets (£464,943).
• Confirm any contingent liabilities or off-balance sheet exposures not disclosed.
• Review the company’s business model and plans given the SIC code indicating financial intermediation “not elsewhere classified,” to understand sustainability prospects.