Company Number: 14214239

Analysis Date: 2025-07-29 12:43 UTC

1. Risk Rating: HIGH
   The company has significant net liabilities, with net current liabilities of approximately £21,908 as of the latest financial year end, indicating solvency issues. The negative net assets and shareholders’ funds further emphasize financial strain. Given the micro-entity size and short operating history since incorporation in 2022, this suggests elevated risk.

2. Key Concerns:

• Solvency Risk: Negative net assets and net current liabilities for the latest year indicate inability to cover short-term obligations from current assets. This is a material red flag for creditor and investor security.
• Liquidity Concerns: Current liabilities (£24,862) vastly exceed current assets (£2,954), implying cash flow stress and potential difficulty meeting immediate payments.
• Operational Stability: The company remains small with only 2 employees on average, minimal share capital (£7.10), and no audit performed. The prior year showed similar negative equity, indicating a continuing financial challenge without clear signs of recovery.

3. Positive Indicators:

• Compliance with Filings: The company is current on both accounts and confirmation statement filings, showing regulatory compliance and governance attentiveness.
• Clear Ownership and Control: Two named individuals hold 75-100% of shares and voting rights, suggesting a clear and stable control structure.
• Micro Entity Reporting: Use of micro-entity reporting standards is appropriate for size, reducing administrative burden and complexity.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities, including creditor identities and repayment schedules.
• Clarify the business plan and cash flow projections to assess prospects for returning to positive net assets.
• Review any related party transactions or director loans that may impact financial position.
• Confirm no undisclosed contingent liabilities or legal risks.
• Examine why the company changed its name recently (October 2024) and whether this reflects restructuring or other operational changes.