Company Number: 14817178

Analysis Date: 2025-07-20 11:04 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated with a modest asset base and positive net current assets, indicating initial solvency. However, limited trading history and relatively high short-term liabilities, including director loans and tax obligations, introduce moderate liquidity and operational risks.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£19,327) exceed cash on hand (£18,340) only marginally, and there are significant tax and payroll-related payables, which could strain cash flow if receivables are delayed.
• Reliance on Director Loans: £7,768 of creditors are director loans, indicating dependency on related-party funding that may not be sustainable long term.
• Limited Operational History: Incorporated in April 2023 with first accounts to March 2024, the company’s stability and market position remain unproven, increasing uncertainty over future earnings and financial resilience.

3. Positive Indicators:

• Positive Net Current Assets and Net Assets: Net current assets of £7,567 and net assets of £8,692 demonstrate the company is solvent at the reporting date.
• Compliance and Up-to-Date Filings: No overdue accounts or confirmation statements, suggesting good regulatory compliance and governance.
• Small Company Reporting with Clear Accounting Policies: Accounts prepared under FRS 102 small entities regime with appropriate disclosures and depreciation policies, reflecting basic financial discipline.

4. Due Diligence Notes:

• Verify the nature and terms of director loans to assess repayment risk and impact on liquidity.
• Review turnover and profitability trends since incorporation, including client base and contract stability.
• Assess cash flow projections and working capital management practices, especially concerning VAT, PAYE, and corporation tax liabilities.
• Confirm that no director disqualifications or adverse conduct records exist beyond the data provided.
• Investigate any contingent liabilities or off-balance sheet obligations not disclosed in filleted accounts.