Company Number: 14502503

Analysis Date: 2025-07-29 12:49 UTC

1. Risk Rating: HIGH
   The company shows significant solvency risk evidenced by net current liabilities of £72,009 and negative shareholders' funds of the same amount. Despite being a small company with limited assets, its liabilities substantially exceed its current assets, indicating a weak financial position.

2. Key Concerns:

• Solvency and Liquidity: Net current liabilities of £72,009 and negative net assets suggest the company is unable to meet its short-term obligations from current assets alone. This presents a high risk of cash flow difficulties.
• Reliance on Parent Company Support: The directors explicitly note that the parent company, Acandis International GmbH, has agreed to provide financial support to meet liabilities. This implies the company is not currently self-sustaining.
• Limited Operating History and Scale: Incorporated in late 2022, with only one financial year reported, the company has minimal operational history and just 3 employees, which limits assessment of its business sustainability and growth prospects.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating good compliance with statutory requirements.
• Audit Opinion: The latest accounts were audited with an unqualified opinion, suggesting that the financial statements fairly present the company's financial position according to accounting standards.
• Parent Company Ownership and Control: The company is wholly owned by Acandis International GmbH, which provides a potential source of ongoing financial and operational support.

4. Due Diligence Notes:

• Verify the nature and terms of the financial support from the parent company, including any formal guarantees or funding agreements.
• Investigate the company's business plan and cash flow projections to assess the path towards operational sustainability and reducing reliance on external support.
• Assess any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.
• Review management experience and governance practices, given the company’s early stage and financial position.
• Monitor creditor relationships, especially amounts owed to group undertakings (£62,934), for potential related party risks.