Company Number: 15055698

Analysis Date: 2025-07-20 15:29 UTC

1. Risk Rating: HIGH
   Justification: The company shows a net liability position of -£5,418 as of 31 August 2024, indicating that its current liabilities exceed its assets. This negative net asset position raises concerns about solvency and the ability to meet obligations. The company is newly incorporated (August 2023) with minimal financial history, limiting the assessment of operational stability.

2. Key Concerns:

• Solvency risk: Negative net assets of -£5,418 suggest potential financial distress.
• Liquidity concerns: Although current liabilities are £7,741, the company reports net current liabilities of the same amount, indicating no working capital buffer.
• Operational scale and sustainability: With only 2 employees and minimal fixed assets (£2,323), the business is very small and may lack operational resilience or diversified revenue streams.

3. Positive Indicators:

• Compliance: The company’s accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance and governance practices.
• Ownership and control: Clear identification of two PSCs with equal share and voting rights, suggesting transparent control structure.
• No liquidation or insolvency status: The company is active and not undergoing liquidation or administration.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to determine if these are short-term operational payables or longer-term obligations.
• Assess cash flow forecasts and capital injection plans from the shareholders to understand how the company intends to address the negative equity position.
• Review business model viability given the micro scale and associated risks of limited operational capacity.
• Confirm no undisclosed contingent liabilities or director loans that might affect solvency.
• Monitor future filings for improvement or deterioration in financial position.