Company Number: 14809359

Analysis Date: 2025-07-29 20:50 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity risks due to negative net current assets and net liabilities shortly after incorporation. The current liabilities substantially exceed current assets, primarily because of director loans, indicating reliance on insider funding rather than operational cash flow.

2. Key Concerns:

• Negative Net Current Assets (-£104,431): Current liabilities exceed current assets by a large margin, signaling potential difficulty meeting short-term obligations.
• Net Liabilities (£-14,431): The company’s overall liabilities outweigh its assets, implying negative equity and financial distress.
• Reliance on Director Loans (£105,861): The entire current liability balance is loans from directors, which may not be sustainable or easily convertible to cash, increasing financial risk.

3. Positive Indicators:

• Tangible Fixed Assets of £90,000: The company holds substantial fixed assets (land & buildings), which could provide collateral or value to support future financing or restructuring.
• Compliance and Filing Status: All filings are up to date with no overdue accounts or confirmation statements, indicating good regulatory compliance.
• Sole Director and PSC Alignment: The sole director and person with significant control are the same individual, potentially simplifying decision-making and governance.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loans, including repayment schedules and whether these loans are secured or convertible.
• Review the valuation and liquidity of the tangible fixed assets to assess their realizable value in a distressed scenario.
• Clarify the company’s business plan and cash flow projections, especially how it intends to address the current negative net assets and working capital deficit.
• Confirm no contingent liabilities or off-balance sheet obligations exist that could exacerbate financial strain.
• Assess the director’s financial capacity and willingness to support the company further, given the current dependency on insider funding.