Company Number: 14149773

Analysis Date: 2025-07-29 16:08 UTC

1. Risk Rating: MEDIUM
   The company shows moderate solvency risk primarily due to consistent negative net current assets, indicating short-term liabilities exceed current assets. However, the positive net assets and shareholder funds provide some buffer.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£5,070) surpass current assets (£1,511) by £3,559 as of June 2024, indicating potential liquidity pressures.
• Small Asset Base: Fixed assets are minimal (£8,002), limiting collateral or resource flexibility.
• Early Stage with Limited Financial History: Incorporated in 2022, the company has a short operational track record, making trend analysis and sustainability assessment challenging.

3. Positive Indicators:

• Increasing Net Assets and Shareholders Funds: From £2,903 in 2023 to £4,443 in 2024, suggesting some retained profit or capital injection.
• Compliance with Filing Deadlines: No overdue accounts or confirmation statements, indicating good regulatory compliance.
• Stable Employee Growth: Increase from 4 to 5 employees may reflect modest operational expansion.

4. Due Diligence Notes:

• Investigate Cash Flow Statements and Profit & Loss Data: To assess operational cash generation and ability to cover current liabilities.
• Review Customer and Supplier Contracts: To understand revenue stability and payment terms influencing working capital.
• Clarify Nature of Current Liabilities: Determine if short-term debts are manageable or if refinancing risks exist.
• Confirm Director and Shareholder Backgrounds: To assess governance quality and potential related-party transactions.