Company Number: 15351856

Analysis Date: 2025-07-20 16:57 UTC

1. Risk Rating: HIGH
   The company's financial position as of 31 December 2024 shows significant net current liabilities (£135,803) and negative shareholders' funds (£133,903), indicating insolvency risk. The company's liabilities substantially exceed its current assets, and cash on hand is minimal (£181), which raises immediate liquidity concerns.

2. Key Concerns:

• Solvency and Negative Net Assets: The company has negative net assets and shareholders' funds, suggesting it is operating with a capital deficiency. Without sufficient equity, meeting long-term obligations could be challenging.
• Liquidity Shortfall: Current liabilities (£191,602) far exceed current assets (£55,799), resulting in a working capital deficit. The negligible cash balance heightens risk of operational cash flow problems.
• Recent Director Changes with Offshore Addresses: Two directors appointed in March 2025 have addresses in Australia, which may complicate governance oversight and raise questions about local operational control.

3. Positive Indicators:

• Active Status and Compliance: The company is active, not in liquidation or administration, and all statutory filings, including accounts and confirmation statements, are up to date and not overdue.
• Early Stage Company: Incorporated December 2023, so it is still in startup phase, which may explain early losses and capital structure issues.
• Sector Exposure: Operates in IT consultancy and software development (SIC 62020, 62012), sectors with growth potential if managed well.

4. Due Diligence Notes:

• Investigate the nature and collectability of the trade debtors (£55,618) to assess quality of current assets.
• Review the composition and maturity of the current liabilities (£191,602), including trade creditors and other creditors, for any imminent payment obligations.
• Clarify the reason for director resignations and appointments, especially the overseas addresses, to assess governance and management continuity.
• Obtain management accounts or cash flow forecasts to understand current operational cash flows and plans for financial restructuring or capital injection.
• Request details on business model viability and contracts in place to judge operational sustainability.