Company Number: 15046931

Analysis Date: 2025-07-29 14:17 UTC

1. Risk Rating: HIGH
   The company shows negative net assets of £10,500 as at 31 August 2024, indicating insolvency on a balance sheet basis. This is a significant red flag for solvency risk despite being a micro-entity and newly incorporated.

2. Key Concerns:

• Negative net assets: The balance sheet reflects liabilities exceeding assets by £10,500, suggesting the company is technically insolvent.
• Limited operating history: Incorporated in August 2023 with only one financial year completed, its financial sustainability is unproven.
• Small scale and limited financial disclosure: As a micro-entity, detailed financial data is minimal, restricting the ability to assess liquidity and cash flow adequacy.

3. Positive Indicators:

• Compliance: The company has filed accounts and confirmation statements on time with no overdue filings, indicating regulatory compliance.
• Ownership and control: The two directors are also the only significant controllers, implying centralized management and potentially aligned interests.
• Employee base: The company employs three people, which shows some operational activity rather than being dormant.

4. Due Diligence Notes:

• Investigate the nature and source of the £10,500 liability causing negative net assets and whether it is short-term or long-term.
• Request management accounts or cash flow forecasts to evaluate liquidity risk and ability to meet ongoing obligations.
• Understand the business model and revenue generation timeline given the SIC code relates to "other residential care activities," which may require significant upfront investment.
• Confirm that there are no undisclosed director loans or related party transactions impacting the financial position.
• Review any contingent liabilities or off-balance-sheet commitments that could exacerbate financial risk.