Company Number: 14016949

Analysis Date: 2025-07-29 19:13 UTC

1. Risk Rating: HIGH
   The company exhibits a significant deterioration in its financial position over the latest reported year, moving from a positive net asset position (£3,844) in 2023 to a net liability position (£-3,686) in 2024, indicating solvency concerns. The net current liabilities of £3,856 versus current assets of only £77 strongly suggest liquidity stress.

2. Key Concerns:

• Solvency Risk: The shift from net assets of £3,844 to net liabilities of £3,686 within a year is a red flag indicating potential inability to meet long-term obligations.
• Liquidity Issues: Current liabilities of £3,933 far exceed current assets of £77 as of 2024, highlighting immediate cash flow pressures and possible working capital shortages.
• Operational Sustainability: The company has only one employee and derives minimal fixed assets (£170), which may signal limited operational scale and potential difficulties in generating sufficient revenue or cash flow.

3. Positive Indicators:

• Compliance: The company is up to date with its statutory filings (accounts and confirmation statement) with no overdue returns or accounts noted.
• Established Control Structure: The presence of three directors and two significant controllers with clear shareholdings and voting rights may imply stable governance and decision-making oversight.
• Industry Sector: Operating within the IT services sector (SIC 62090) offers potential for growth and scalability if operational challenges can be addressed.

4. Due Diligence Notes:

• Investigate the cause of the sharp decline in current assets and the increase in current liabilities within the last financial year—review detailed financial notes or management commentary if available.
• Examine cash flow statements and any available management accounts to assess ongoing liquidity and operational cash generation capability.
• Review the company’s business model, contracts, and revenue streams to evaluate prospects for turnaround or risk of continued losses.
• Confirm no undisclosed liabilities or contingent risks exist that could further impair financial stability.
• Assess director backgrounds and any related party transactions for potential conflicts or risks.