Company Number: 14736496

Analysis Date: 2025-07-29 13:24 UTC

1. Risk Rating: HIGH
   Justification: The company shows significant net current liabilities (£87,327 deficit) and negative shareholders' funds (-£3,871) within its first financial period, indicating immediate solvency and liquidity concerns. The cash balance (£4,872) is minimal compared to short-term liabilities (£92,199), suggesting limited ability to meet obligations as they fall due.

2. Key Concerns:

• Solvency Risk: Negative net assets and shareholders' funds imply the company is technically insolvent at the balance sheet date.
• Liquidity Concerns: Cash on hand is insufficient relative to current liabilities, raising the risk of cash flow difficulties.
• Operational Stability: As a newly incorporated entity (March 2023) with only one financial year of data and net liabilities, the sustainability of operations without additional capital injection or revenue growth is uncertain.

3. Positive Indicators:

• The company holds a material fixed asset in investment property valued at £83,460, which may provide some collateral or potential future liquidity.
• All statutory filings (accounts and confirmation statement) are up to date and not overdue, reflecting compliance with regulatory requirements.
• The company has a diversified board of four directors with relevant roles (contracts, finance, office, quality), suggesting some operational management structure.

4. Due Diligence Notes:

• Investigate the nature and terms of the £92,199 current liabilities, including creditor types, payment terms, and any related party transactions.
• Assess the valuation basis and liquidity of the investment property asset, including any encumbrances or restrictions on disposal.
• Review cash flow forecasts, business plans, and sources of financing to understand how the company intends to address its working capital deficit and negative equity.
• Confirm there are no director disqualifications or legal proceedings against key management that could impact governance.
• Clarify the absence of an income statement and audit, understanding the completeness and reliability of financial data given the exemption status.