Company Number: 15126447

Analysis Date: 2025-07-20 11:44 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (September 2023) with a very small scale of operations reflected in turnover of £48,476 and net assets of only £335. While it reports a profit and no overdue filings, the minimal cash balance (£1) and high reliance on director loans to finance working capital introduce liquidity risk. The business is in the holding company sector with limited operational data, which raises questions about revenue sustainability.

2. Key Concerns:

• Liquidity Risk: Cash at bank is negligible (£1) compared to current liabilities (£10,061), though net current assets are positive mainly due to director loans. This indicates reliance on related-party funding rather than operating cash flow.
• Limited Operating History: The company has less than one full year of trading, making it difficult to assess ongoing profitability or business sustainability.
• Concentration of Control: Full ownership and control by a single director (also the sole employee) could pose governance risks and lack of oversight.

3. Positive Indicators:

• Profitability in First Year: The company generated a profit before tax of £28,807 and net profit of £19,825 despite being a new start-up.
• Compliance Record: No overdue accounts or confirmation statements, demonstrating good regulatory compliance since incorporation.
• Positive Net Current Assets: Although small, net current assets are positive at £335, showing current liabilities are covered by current assets including director loans.

4. Due Diligence Notes:

• Investigate the nature and sustainability of revenue streams given the SIC code for holding companies and limited turnover.
• Clarify the terms and security of the director's loan account (£10,395) and any plans for external financing or capital injection.
• Assess the company’s business plan and pipeline to understand future cash flow expectations and operational scalability.
• Review the director’s background and capacity to manage business growth given sole control and employment.
• Monitor future filings for consistency in financial performance and liquidity position.