Company Number: 14804261

Analysis Date: 2025-07-20 15:08 UTC

1. Risk Rating: MEDIUM

The company is newly incorporated (April 2023) with only one financial year of accounts filed. While it shows positive net assets and working capital, the presence of significant current liabilities and director loan account overdraft suggest moderate risk. The company operates as a holding company, which may imply dependency on underlying investments for income.

2. Key Concerns:

• High Current Liabilities vs Debtors: Current liabilities (£327,656) substantially exceed reported debtors (£67,972), which could indicate liquidity pressure.
• Director’s Loan Account Overdrawn: The director’s loan account was overdrawn by a maximum of £17,266 during the period and remains £8,886 overdrawn at year end, which may imply reliance on director funding or cash flow constraints.
• Concentration of Control: Single shareholder and director with 75-100% ownership concentration raises governance and succession risk, and potential lack of independent oversight.

3. Positive Indicators:

• Net Assets Positive at £80,916: Despite liabilities, the company maintains positive net equity and shareholders’ funds.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating regulatory compliance.
• Going Concern Status: Accounts prepared on going concern basis without audit exemption issues, suggesting management confidence in ongoing operations.

4. Due Diligence Notes:

• Review the nature and valuation of the “Other financial assets” (£360,000) to assess underlying asset quality and liquidity.
• Investigate composition and maturity profile of current and long-term liabilities to evaluate solvency risk more precisely.
• Examine cash flow statements or bank statements if available to clarify operational cash generation and director loan transactions.
• Assess business plan and revenue sources given the company is a holding company and has minimal employees (one director).
• Confirm any contingent liabilities or off-balance sheet obligations not disclosed in the abridged accounts.