Company Number: 14684122

Analysis Date: 2025-07-29 15:14 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks with net current liabilities of £14,475 against minimal cash reserves of £267 and negative shareholders’ funds of £5,935 within its first year of operation. The absence of employees and ongoing negative net assets highlight operational and financial instability.

2. Key Concerns:

• Negative Working Capital and Shareholders’ Funds: The company’s net current liabilities and negative equity position indicate it may struggle to meet short-term obligations without additional financing.
• Minimal Cash Reserves: With only £267 in cash, the company appears to have limited liquidity to cover immediate expenses or creditor demands.
• Lack of Operational Scale: No employees reported, minimal tangible assets (only intangible assets), and no income statement filed, suggesting limited or no trading activity, raising questions about business sustainability.

3. Positive Indicators:

• Current Compliance with Filing Requirements: Annual accounts and confirmation statements are up to date and not overdue, indicating good regulatory compliance so far.
• Clear Ownership and Management: Single director and 75-100% ownership by Sarah Elizabeth Watt provides clarity and control in governance and decision-making.
• No Indication of Insolvency Proceedings: The company is active and not in liquidation, administration, or receivership at this stage.

4. Due Diligence Notes:

• Investigate the source and purpose of the intangible assets (£8,640 net book value) to assess their recoverability and business relevance.
• Clarify plans for addressing the negative equity and liquidity shortfall, including any anticipated capital injections or financing arrangements.
• Review business model and revenue generation prospects given the absence of employees and no income statement disclosure.
• Confirm no undisclosed liabilities or contingent risks that could exacerbate financial instability.