Company Number: 13951502

Analysis Date: 2025-07-20 15:16 UTC

1. Risk Rating: HIGH
   The company exhibits a deteriorating financial position with net current liabilities increasing substantially and negative net assets reported for the latest financial year. This indicates solvency concerns and potential inability to meet short-term obligations.

2. Key Concerns:

• Negative net current assets of £2,370 as at 31 March 2024, worsening from a positive net current asset position in previous years, signals liquidity stress.
• Net assets and shareholders’ funds are negative (£2,370) in 2024, suggesting the company's liabilities exceed its assets, raising solvency risk.
• The company is very young (incorporated in 2022) and small (micro-entity), with only one employee and limited financial history, which limits visibility on operational sustainability and cash flow robustness.

3. Positive Indicators:

• The company is timely with statutory filings; no overdue accounts or confirmation statements are recorded.
• Ownership and control are consolidated under a single director and shareholder with full voting rights, which may allow for agile decision-making.
• The company operates within the IT consultancy and service sector, which can have scalable business models and potential for growth.

4. Due Diligence Notes:

• Verify the nature of current liabilities and any plans or ongoing efforts to address the negative working capital position.
• Assess cash flow statements and any off-balance sheet financing or commitments not captured in the micro-entity accounts.
• Understand the business model, revenue streams, and customer base to evaluate operational viability beyond the limited financial snapshot.
• Investigate director’s plans to recapitalize or restructure the company to restore solvency.
• Confirm whether the micro-entity accounts fully reflect all financial obligations or if there are related party transactions or contingent liabilities.