Company Number: 15023738

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

1. Risk Rating: HIGH
   The company shows signs of financial strain with negative net current assets and shareholders’ funds, indicating potential solvency issues. The limited cash reserves relative to current liabilities raise liquidity concerns.

2. Key Concerns:

• Negative net current assets of £(13,281) and total assets less current liabilities of £(2,767) highlight an inability to cover short-term obligations with current assets.
• Shareholders’ funds are negative at £(2,867), suggesting the company is technically insolvent on a balance sheet basis.
• The director’s loan of £2,480, interest-free and payable on demand, could indicate reliance on director funding rather than operational cash flow.

3. Positive Indicators:

• The company is newly incorporated (July 2023) and actively trading with no overdue filings, demonstrating compliance and governance diligence.
• Tangible fixed assets of £10,514 may provide some collateral or operational base, although not sufficient to offset liabilities.
• The sole director and 100% shareholder are aligned, which can facilitate swift decision making and restructuring if needed.

4. Due Diligence Notes:

• Investigate the company’s business model and revenue projections to understand how it plans to improve liquidity and solvency.
• Examine cash flow statements or management accounts if available to assess operational cash generation and working capital management.
• Review the terms and nature of director’s loan and any other related party transactions to understand funding dependencies.
• Verify whether any contingent liabilities or commitments exist that could exacerbate financial risks.
• Assess any planned capital injections or financing arrangements to support future operations.