Company Number: 15168978

Analysis Date: 2025-07-29 12:27 UTC

1. Risk Rating: HIGH
   The company shows significant net liabilities with net current liabilities of £87,287 and overall net liabilities of £89,187, indicating insolvency risk. The micro-entity financials reflect a negative equity position shortly after incorporation, which is a strong red flag.

2. Key Concerns:

• Solvency Risk: Negative net assets and net current assets imply the company is unable to meet short-term obligations from current assets. This suggests financial distress.
• Liquidity Concerns: Current liabilities exceed current assets by a large margin (£105k vs £18k), indicating poor liquidity and potential cash flow problems.
• Operational Stability: Incorporated recently in September 2023 with only one set of unaudited financials; the company is in its infancy with no track record of profitability or positive equity.

3. Positive Indicators:

• Compliance: All statutory filings (accounts and confirmation statements) are up to date and not overdue, showing good regulatory compliance to date.
• Ownership and Control Transparency: PSCs are properly identified with no signs of hidden ownership or governance irregularities.
• Small Scale Operations: Being a micro-entity simplifies reporting and may reduce operating costs in the early stage of the company.

4. Due Diligence Notes:

• Investigate the nature of the £105,399 current liabilities—are these trade payables, loans, or other obligations? Understanding creditor terms is critical.
• Review cash flow forecasts and funding plans to determine how the company intends to address the working capital deficit and negative net assets.
• Examine the business model and contracts underlying the temporary employment agency activity (SIC 78200) for sustainability and growth prospects.
• Consider director background and financial support provided by shareholders, especially the three directors and two PSCs, to assess ongoing commitment and resource availability.