Company Number: 15151520

Analysis Date: 2025-07-20 15:38 UTC

1. Risk Rating: HIGH

Justification: The company shows net current liabilities and overall negative net assets within its first year of operation. This indicates immediate solvency and liquidity challenges. The very limited current assets (£641) versus current liabilities (£20,280) raises significant concerns about its ability to meet short-term obligations.

2. Key Concerns:

   • Negative Net Assets (-£4,429): The business is technically insolvent on a balance sheet basis, which is a strong red flag for potential financial distress.
   • Working Capital Deficit: Current liabilities exceed current assets by £19,639, suggesting potential cash flow problems that could impair operational continuity.
   • Early Stage Operations: Incorporated less than one year ago with only two employees and limited financial history, making it difficult to assess business sustainability or creditworthiness.

3. Positive Indicators:

   • Compliance with Filings: Accounts and confirmation statement are filed on time, indicating good regulatory compliance and governance.
   • Clear Ownership and Control: Two directors each hold between 50-75% shares and voting rights, providing clarity on decision-making and accountability.
   • Micro-entity Status: Simplified reporting requirements reduce administrative burden and may reflect a lean operating structure at this early stage.

4. Due Diligence Notes:

   • Investigate the nature and timing of the current liabilities—are these trade creditors, loans, or accrued expenses? Understanding the short-term obligations is critical.
   • Examine cash flow forecasts or management accounts post 30 September 2024 to assess whether the company has improved liquidity since year-end.
   • Review business plan, contracts, and pipeline to evaluate operational sustainability and prospects for revenue growth.
   • Confirm absence of director disqualifications or adverse regulatory actions given the company’s nascent status.
   • Assess whether additional capital injections or shareholder loans are planned to alleviate the net liabilities position.