Company Number: 14189834

Analysis Date: 2025-07-29 14:54 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets (£860 deficit) as of the latest financial year, indicating a working capital shortfall. As a micro-entity incorporated recently in 2022, the lack of fixed assets and minimal equity (£860 shareholders’ funds, declining from £100) heightens solvency risk. Its small scale and negative working capital suggest potential liquidity constraints.

2. Key Concerns:

• Negative net current assets: Current liabilities (£37,728) slightly exceed current assets (£36,868), indicating possible short-term liquidity issues.
• Very limited financial history and scale: With incorporation in mid-2022 and only one employee reported, operational stability is uncertain.
• Declining net assets: From £100 in 2023 to a negative £860 in 2024 suggests losses or increased liabilities without corresponding asset growth.

3. Positive Indicators:

• Up-to-date filings: No overdue accounts or confirmation statements, showing compliance with Companies House filing requirements.
• Ownership and control are clear: The majority shareholder and director is identified, which may facilitate decision-making and governance.
• Micro-entity status: Lower regulatory burden, which reduces administrative costs.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and reasons for working capital deficit—are these trade creditors, accrued expenses, or short-term borrowings?
• Assess cash flow forecasts and any external funding or shareholder loans to cover liquidity shortfalls.
• Review business model and revenue generation plans given the minimal fixed assets and small employee base.
• Confirm no director disqualification or governance issues beyond the information provided.
• Verify the accuracy of financial data and whether any contingent liabilities or off-balance sheet risks exist.