Company Number: 14665807

Analysis Date: 2025-07-29 17:27 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, primarily due to large outstanding liabilities relative to liquid assets and negative net current assets, despite positive net assets driven by intangible goodwill.

2. Key Concerns:

• Negative Net Current Assets: The company shows net current liabilities of £135,389, indicating a shortfall in short-term assets versus short-term liabilities, which poses liquidity risk.
• High Long-Term Debt: Bank loans and overdrafts amount to £552,450 (£118,080 short-term + £434,370 long-term), a substantial liability considering the company's cash position and early operational stage.
• Intangible Asset Valuation Risk: Goodwill of £1,391,008 forms the bulk of total assets, yet it is not amortised and represents an indefinite life asset whose recoverability depends on future cash flows. This creates uncertainty around true asset backing and solvency.

3. Positive Indicators:

• Strong Shareholders’ Funds: Shareholders’ equity is £821,249, reflecting capital injection and retained earnings, which supports the balance sheet.
• No Overdue Filings: The company is compliant with statutory filing deadlines, indicating good regulatory adherence.
• Single Director with Clear Control: Ownership and management are consolidated with a financially experienced director, which may facilitate swift decision-making.

4. Due Diligence Notes:

• Verify the nature and valuation basis of the goodwill asset, including impairment testing and assumptions underlying its indefinite life classification.
• Examine the terms and covenants of the bank loans and overdrafts to assess refinancing risk and potential breaches.
• Review cash flow forecasts to determine how the company plans to manage negative working capital and service debt.
• Investigate the revenue generation model and client contracts to evaluate operational sustainability and ability to cover liabilities.
• Confirm the completeness and accuracy of the financial data, given the company’s recent incorporation and exemption from audit.