Company Number: 15091865

Analysis Date: 2025-07-20 13:51 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (August 2023) and has filed its first set of accounts on time with no overdue filings, indicating compliance. However, the financial data relates to a short initial period and shows modest net current assets (£67k) and shareholders’ funds (£87k). Current liabilities are significant relative to current assets, suggesting moderate liquidity risk. The absence of historical profitability data and reliance on debtors for current assets elevate the risk profile.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£245k) represent about 78% of current assets (£312k), with cash on hand (£131k) insufficient alone to cover liabilities, indicating potential cash flow constraints.
• Limited Operating History: Incorporation in 2023 means limited financial track record to assess operational stability or revenue generation capability.
• Concentration of Control: Two directors/PSCs each hold 25-50% shares and voting rights, which may pose governance risks if disagreements arise, especially in a small company.

3. Positive Indicators:

• Timely Compliance: Accounts and confirmation statement filed within deadlines, showing regulatory diligence.
• Positive Net Current Assets: Despite being a startup, net current assets are positive (£67k), indicating some working capital buffer.
• Clear Director Roles and Expertise: Directors have defined roles including HR, Legal and Compliance, and Operations, implying operational oversight and compliance awareness.

4. Due Diligence Notes:

• Verify the nature and collectability of trade debtors (£181k) to assess realisable current assets and liquidity risk.
• Obtain management accounts or cash flow forecasts post-March 2024 to evaluate ongoing operational performance and funding requirements.
• Review lease commitments or other off-balance sheet liabilities that may impact cash flow.
• Understand the business model and client contracts underlying SIC code 87900 to assess sustainability and revenue risk.
• Confirm absence of director disqualifications or litigation risks.