Company Number: 14120992

Analysis Date: 2025-07-29 17:16 UTC

1. Risk Rating: HIGH
   The company shows a materially negative net asset position (£-5,414 as of 2024) and significant current liabilities exceeding current assets, indicating solvency issues. Despite being a micro-entity, the worsening net current liabilities from £1,747 (2023) to £8,131 (2024) is a key concern for meeting short-term obligations.

2. Key Concerns:

• Solvency and Liquidity Issues: Negative net assets and increasing current liabilities relative to current assets suggest potential cash flow difficulties and risk of insolvency.
• Lack of Operating Activity: No employees reported and minimal current assets (£102), implying limited or no business operations generating revenue.
• Short Operating History and Director Changes: Incorporated in 2022 with director turnover in 2025; early-stage companies with such financial stress and management changes pose operational and governance risks.

3. Positive Indicators:

• No Filing or Compliance Delinquencies: Accounts and confirmation statements are filed on time with no overdue filings, indicating compliance with statutory requirements.
• Clear Director and PSC Information: Transparency regarding directors and persons with significant control is maintained.
• Micro-entity Status: Limited filing requirements reduce administrative burden, though this does not mitigate financial risks.

4. Due Diligence Notes:

• Investigate the nature and causes of the negative net assets and whether there is external funding or shareholder support planned to cover liabilities.
• Assess business model viability and revenue generation plans given zero employees and minimal current assets.
• Review director background and reasons for recent director resignation and appointment to evaluate management stability.
• Confirm whether the company is currently trading or has ceased operations despite being active on record.
• Check for any contingent liabilities or related party transactions not reflected in the micro-entity accounts.