Company Number: 12815250

Analysis Date: 2025-07-19 11:56 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant liquidity risk, with current liabilities exceeding current assets by £22,770 as at 31 August 2024. This negative working capital position, combined with limited cash reserves (£14,830), raises concerns about the company’s ability to meet short-term obligations. The company's rapid growth from zero to substantial fixed assets and liabilities within a short period (incorporated in 2020) without clear profitability indicators further adds to operational risk.

2. Key Concerns:

• Liquidity Deficit: Net current liabilities of £22,770 indicate potential cash flow strain, risking delayed payments to suppliers and creditors.
• Unsecured Debtors: A large proportion of current assets (debtors £53,670) are owed by customers, which may be difficult to collect promptly, affecting liquidity.
• Lack of Profit and Loss Disclosure: Absence of a profit and loss account and no audit reduces transparency on operational profitability and cash generation capacity.

3. Positive Indicators:

• Asset Base Growth: Tangible fixed assets of £100,821 suggest investment in operational capacity, potentially supporting future revenue generation.
• Compliance with Filings: The company is current with its accounts and confirmation statement filings, reflecting regulatory compliance and governance diligence.
• Going Concern Statement: The director affirms going concern status, indicating management’s confidence in the company’s ability to sustain operations.

4. Due Diligence Notes:

• Obtain detailed profit and loss statements and cash flow forecasts to assess operational profitability and liquidity management.
• Investigate the nature and collectability of debtors, including aging analysis and credit risk.
• Understand the terms and maturity profile of current liabilities to determine urgency and refinancing risk.
• Review director and shareholder background for experience and financial support capacity.
• Evaluate lease and other contractual obligations to assess ongoing cost commitments.