Company Number: 14762805

Analysis Date: 2025-07-19 12:21 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (March 2023) with limited financial history. The balance sheet shows net current liabilities and significant director loans, which suggests potential liquidity constraints and reliance on related-party funding. However, it is not in liquidation and has complied with filing requirements to date.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£28,430) exceed current assets (£25,428) by £3,002, indicating short-term liquidity pressure.
• High Director Loan Balances: £17,770 of current liabilities and £10,133 of long-term liabilities are director loans, signaling dependence on director financing, which may not be sustainable.
• Dividend Payment: A £14,150 final dividend was paid despite net current liabilities and low net assets (£6,136), raising concerns about cash flow management and capital adequacy.

3. Positive Indicators:

• Positive Net Assets: Despite liquidity issues, net assets stand at £6,136, providing some equity buffer.
• No Filing Delinquencies: The company is up to date on accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Operations in a Defined Niche: The company operates in landscape service activities (SIC 81300), a sector with steady demand potential.

4. Due Diligence Notes:

• Review detailed cash flow statements and working capital management practices to assess short-term liquidity risk.
• Investigate the terms and conditions of director loans, including repayment schedules and interest, to understand funding stability.
• Assess the rationale and impact of the dividend payment on financial health, especially given the liquidity position.
• Obtain turnover and profit and loss details (not filed due to exemption) to better understand operational profitability and sustainability.
• Verify the background and creditworthiness of the directors given their significant financial support to the company.