Company Number: 14737323

Analysis Date: 2025-07-29 13:15 UTC

1. Risk Rating: MEDIUM
   Justification: The company is newly incorporated (March 2023) with a single financial period reported. It shows positive net current assets and shareholders' funds, but limited cash reserves and significant amounts owed by the director and related parties create some liquidity risk. The business is small scale with one employee and limited trading history, which increases operational uncertainty.

2. Key Concerns:

• Liquidity Constraints: Cash at bank is only £5,632 against current liabilities of £52,515, while a large debtor balance (£59,394) includes £35,097 owed by group undertakings which may not be readily collectible.
• Related Party Debt: £21,750 owed to the director with no fixed repayment terms or interest could signal reliance on director financing, indicating potential cash flow pressure.
• Limited Operating History: Incorporated less than 2 years ago with only one employee and unaudited accounts, making it difficult to assess ongoing operational viability and profitability.

3. Positive Indicators:

• Positive Net Current Assets: £12,511 net working capital indicates current assets exceed liabilities, which is a good short-term solvency sign.
• Shareholders’ Funds: Equity stands at £28,022, reflecting a positive net asset base at this early stage.
• No Overdue Filings: Accounts and confirmation statements are filed on time, showing regulatory compliance and good governance discipline.

4. Due Diligence Notes:

• Clarify the nature and collectibility of the amounts owed by group undertakings, including any repayment schedules or guarantees.
• Investigate the terms and future plans regarding the director loan balance to assess potential liquidity risk.
• Obtain information on turnover, profitability, and cash flow forecasts to gauge operational sustainability beyond the balance sheet snapshot.
• Review business plans or contracts to understand revenue generation prospects in the "Repair of machinery" sector.
• Confirm the absence of any director disqualifications or adverse regulatory issues not evident from the filings.