Company Number: 14216907

Analysis Date: 2025-07-29 17:16 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows positive net current assets and no overdue filings, indicating basic compliance and some operational stability. However, extremely low cash balances and reliance on debtors for current assets pose liquidity risks for meeting immediate obligations.

2. Key Concerns:

   • Liquidity Constraints: Cash on hand is just £1 (2024) and £68 (2023), which is insufficient for day-to-day operational expenses, relying heavily on debtors (£6,531) to cover short-term liabilities (£2,534). This indicates potential cash flow risk.
   • No Employees Reported: The company reports zero employees, which raises questions about operational sustainability and ability to generate revenue or manage business functions effectively.
   • New Company with Limited Financial History: Incorporated in July 2022, with only two years of financial data available, limiting the ability to assess long-term stability and growth trends.

3. Positive Indicators:

   • Positive Net Current Assets and Net Assets: Net current assets increased from £3,428 (2023) to £3,998 (2024), showing some growth in working capital and equity base.
   • Up-to-date Compliance: No overdue accounts or confirmation statements, demonstrating good regulatory compliance and governance practices.
   • Majority Ownership and Control: One individual holds 75-100% ownership and voting rights, simplifying decision-making and potentially providing clear strategic direction.

4. Due Diligence Notes:

   • Investigate the nature and collectability of debtor balances (over £6,500) to confirm if these represent genuine receivables or potentially overdue/unrealistic amounts.
   • Clarify business operations and revenue model given no employees and limited fixed assets or cash reserves. Confirm if the company outsources operations or is non-trading.
   • Review director background and capacity given the company’s early stage and operational profile.
   • Examine any related party transactions, especially considering common registered address and overlap of director and PSC residence.
   • Confirm future funding plans or cash inflows to address extremely low cash holdings and ensure ongoing solvency.