Company Number: 14156988

Analysis Date: 2025-07-29 20:52 UTC

1. Risk Rating: HIGH
   The company's financial position shows minimal net assets (£1,054 as of June 2024) and a marginal positive net current asset position, indicating a very tight liquidity situation. The trend from the previous year shows a significant deterioration from net assets of £10,022 to just £1,054. This suggests potential solvency risk and limited financial buffer to meet obligations.

2. Key Concerns:

• Deteriorating Financial Position: Net current assets fell sharply from £10,022 negative in 2023 to £1,054 positive in 2024, indicating increasing liabilities or reduced assets.
• Very Limited Equity Base: Shareholders' funds stand at only £1,054, which offers minimal cushion against financial stress.
• Single Employee and Micro Entity Status: The company is micro sized with only one employee, which may reflect limited operational scale and potential vulnerability to market or operational shocks.

3. Positive Indicators:

• Current Filing Status: All required accounts and confirmation statements are filed on time with no overdue filings, indicating good regulatory compliance.
• Active Status and Recent Director Appointment: The company is active with a recently appointed director (October 2023), which may signal management engagement or restructuring efforts.
• Increase in Current Assets: Current assets increased substantially from £9,055 to £79,802, which could indicate improved cash or receivables position.

4. Due Diligence Notes:

• Investigate the nature of the increase in current assets, and whether they are liquid (cash) or tied up in receivables or inventory.
• Assess the reasons for the sharp increase in current liabilities from £19,077 (2023) to £78,748 (2024) and the sustainability of the company's working capital.
• Review the operational model given the micro entity status and single employee count to understand business viability and revenue generation capabilities.
• Confirm there are no contingent liabilities or off-balance sheet exposures that could materially affect solvency.
• Evaluate director and shareholder arrangements, especially given the change in control and director appointments within a short timeframe.