Company Number: 15587814

Analysis Date: 2025-07-20 11:22 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets (-£648) and net current liabilities (-£332) at its first year-end, indicating poor solvency. The micro-entity status and very limited financial data limit visibility, but the negative equity and working capital suggest material financial distress risk.

2. Key Concerns:

• Negative net assets and net current liabilities indicate inability to cover short-term obligations from current assets.
• Director loan of £100 is unsecured and interest-free, potentially indicating reliance on director funding rather than operating cash flow.
• Company is newly incorporated (March 2024) with only one employee and minimal assets, raising questions about operational scale and sustainability.

3. Positive Indicators:

• Accounts and confirmation statements are filed on time, showing compliance with filing requirements.
• The sole director holds full control and has made a director advance, indicating commitment to funding the business.
• The company operates in a defined niche (plumbing, heat and air-conditioning installation) which can be a stable service sector.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan and whether further funding is planned or required.
• Assess the business plan and projected cash flows to understand how the company intends to improve solvency and liquidity.
• Verify the operational status and revenue generation since incorporation, given minimal assets and employee count.
• Confirm no outstanding regulatory or compliance issues beyond filings, especially given the early stage of the company.