Company Number: 14736280

Analysis Date: 2025-07-29 13:22 UTC

1. Risk Rating: HIGH
   The company's financial statements as of 31 March 2024 indicate net liabilities of £500 and negative capital and reserves, signaling an insolvency risk. Despite showing current assets of £100, the presence of £600 in accruals and deferred income causing a negative net asset position raises concerns about solvency and liquidity.

2. Key Concerns:

• Negative Net Assets and Capital Deficiency: The balance sheet reflects a net liability position of £500, indicating the company owes more than it owns, a critical red flag for solvency.
• Accruals and Deferred Income Exceeding Current Assets: £600 in accruals and deferred income against only £100 current assets suggests cash flow timing issues or potential unearned income liabilities.
• Zero Employees and Early Stage: No employees and incorporation in March 2023 imply the company is in an embryonic operational phase with unproven business sustainability.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, indicating good governance in statutory compliance.
• Clear Ownership and Control: One director and sole shareholder with 75-100% control simplifies governance and decision-making processes.
• Business Sector: Operating in dental practice activities (SIC 86230) which is generally a stable and essential service sector.

4. Due Diligence Notes:

• Investigate the nature and timing of the accruals and deferred income to understand if these are legitimate liabilities or accounting timing differences.
• Review the company's cash flow projections and funding sources, considering the negative equity and minimal current assets.
• Assess the business plan and any contracts or revenues generated to date to evaluate operational viability and growth prospects.
• Confirm no undisclosed related party transactions or director loans that might impact financial stability.
• Verify the absence of any director disqualification or regulatory issues beyond the public record.