Company Number: 14487905

Analysis Date: 2025-07-20 14:08 UTC

1. Risk Rating: MEDIUM
   The company shows a small negative net current asset position over the past years, indicating potential liquidity pressure. However, it remains solvent on a total asset less current liabilities basis with positive shareholders’ funds, albeit modest. The company is very young (incorporated late 2022) and operates with a very small scale and single director, which adds to operational risk.

2. Key Concerns:

• Negative Working Capital: Net current liabilities of £2,568 at 2024 year-end highlight potential short-term liquidity constraints and risks in meeting imminent obligations.
• Taxation and Social Security Creditors: Significant increase in tax and social security creditors to £8,603 suggests possible cash flow timing issues or underpayment concerns.
• Small Scale and Single Director Control: The company has only one employee and one director who also is the sole shareholder, which increases dependency risk and limits governance and operational resilience.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with both accounts and confirmation statement filings, indicating regulatory compliance to date.
• Assets Exceed Liabilities: Despite negative working capital, total assets less current liabilities and shareholders’ funds remain positive, showing solvency at balance sheet date.
• Consistent Cash Position: Cash balances have improved slightly to £7,904, providing some buffer to manage short-term liabilities.

4. Due Diligence Notes:

• Investigate the nature and timing of tax and social security liabilities to confirm if these are manageable or indicative of cash flow stress.
• Review the company’s cash flow forecasts and working capital management practices given the persistent negative net current assets.
• Assess business model sustainability and revenue generation capacity, especially given the small scale, to understand operational stability.
• Confirm absence of any director disqualifications or governance issues given sole director control.
• Consider obtaining management accounts or interim financial information to assess current financial health beyond year-end figures.