Company Number: 14836401

Analysis Date: 2025-07-29 17:09 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities exceeding £12,000 and negative net current assets. As a very new entity with minimal fixed assets and an adverse working capital position, it faces high financial risk.

2. Key Concerns:

• Solvency Risk: Net liabilities of £12,417 indicate the company’s liabilities exceed its assets, raising questions about its ability to meet long-term obligations.
• Liquidity Issues: Current liabilities (£14,742) far exceed current assets (£2,225), resulting in a negative net working capital of £12,517, which suggests potential cash flow difficulties.
• Operational Sustainability: Incorporated less than a year ago, with limited financial history and only two employees, the company has not demonstrated operational stability or profitability.

3. Positive Indicators:

• Compliance: The company is current on all filings, including accounts and confirmation statements, with no overdue submissions.
• Ownership and Control: The sole director and 75-100% shareholder is clearly identified, which may facilitate streamlined decision-making.
• Micro-entity Status: As a micro-entity, the company benefits from simplified reporting requirements, which reduces compliance burden in early stages.

4. Due Diligence Notes:

• Investigate the nature and maturity of the current liabilities to understand immediate cash obligations and creditor risk.
• Review any cash flow forecasts or management plans to address the negative working capital position.
• Assess the business model and revenue generation capabilities given the micro-entity size and short operating period.
• Confirm if there are any contingent liabilities or off-balance-sheet obligations.
• Evaluate the background and financial strength of the sole director/shareholder to understand support potential.