Company Number: 14761980

Analysis Date: 2025-07-19 12:21 UTC

1. Risk Rating: HIGH
   The company shows significant negative net current assets and net assets, indicating potential solvency issues. Current liabilities greatly exceed current assets, which raises liquidity concerns.

2. Key Concerns:

• Negative net current assets of £(102,761) and net assets of £(94,443) one year after incorporation, indicating the company is insolvent on a balance sheet basis.
• Significant current liabilities (£142,625), with a large portion (£90,900) owed to group undertakings, suggesting reliance on related party funding rather than independent cash flow.
• The company trades in private security activities, a sector requiring regulatory compliance and licensing; no specific mention of regulatory issues, but this warrants verification.

3. Positive Indicators:

• The company is current with all statutory filings and accounts, with no overdue returns or accounts.
• Directors and shareholders have expressed support for the company to continue as a going concern, which may provide financial backing.
• Tangible fixed assets exist, albeit small (£8,318), showing investment in operational equipment.

4. Due Diligence Notes:

• Investigate the nature and terms of the £90,900 owed to group undertakings: is this a loan, supplier credit, or other related party funding? Assess the company's repayment capacity.
• Review cash flow forecasts and working capital management plans to determine how the company intends to address the liquidity gap.
• Confirm regulatory compliance and licensing status required for private security activities, including any pending inspections or audits.
• Clarify the business model and revenue generation, since turnover and profit/loss figures are not disclosed, to assess operational sustainability.
• Evaluate the directors’ plans and shareholder support mechanisms to sustain and grow the business.