Company Number: 15182556

Analysis Date: 2025-07-20 19:07 UTC

1. Risk Rating: HIGH

Justification: The company’s financial data reveals negative net current assets (working capital) of £10,024 despite reporting positive net assets of £19,005. The negative working capital indicates a liquidity shortfall, raising concerns about the company’s ability to meet short-term obligations as they fall due. Additionally, the company is very young (incorporated in late 2023) and operates as a micro-entity with minimal financial history, which limits visibility into operational stability.

2. Key Concerns:

• Negative net current assets (current liabilities exceed current assets by £10,024), signaling potential liquidity stress.
• The called-up share capital not paid of £29,029 suggests that capital has been subscribed but not yet received in cash, which may impair available funds.
• Very limited operating history (less than one full financial year) and only 2 employees, making it difficult to assess business sustainability and cash flow generation.

3. Positive Indicators:

• The company filed accounts and confirmation statements on time, indicating compliance with statutory regulatory requirements.
• Shareholders’ funds of £19,005 show some equity buffer, supported by a single controlling shareholder with 75-100% ownership and full control over directorship.
• The company has a designated company secretary and director both appointed at incorporation, demonstrating formal governance structure in place.

4. Due Diligence Notes:

• Investigate the nature and timing of the called-up share capital not paid: is this expected to be received imminently or at risk of non-payment?
• Review cash flow forecasts and bank statements to assess the company’s ability to resolve the current liquidity deficit.
• Understand the business model and revenue pipeline to evaluate operational sustainability given the minimal employee base and early stage.
• Confirm no contingent liabilities or off-balance sheet obligations that could further impair solvency.
• Verify that the director and secretary have no adverse regulatory or disqualification records.