Company Number: 14384924

Analysis Date: 2025-07-29 17:39 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated with minimal financial history and very tight net assets (£168). Current liabilities (£9,368) nearly equal current assets (£9,536), indicating limited liquidity buffer. However, there is no overdue filing and the company remains active.

2. Key Concerns:

• Tight Liquidity Position: The net current assets are only £168, showing minimal working capital to cover short-term obligations. This raises concerns about the ability to manage cash flow fluctuations.
• Limited Capitalization: Share capital is £1 with retained earnings of £167, indicating a very small equity base that may limit resilience to operational setbacks.
• Related Party Loan: An interest-free loan of £1,406 from the director to the company suggests reliance on director funding, which could present risks if this support is withdrawn.

3. Positive Indicators:

• Compliance: The company is current with its statutory filings, including accounts and confirmation statements, reflecting good governance practices so far.
• Going Concern Assumption: The director’s statement confirms accounts are prepared on a going concern basis, indicating no immediate solvency threats recognized internally.
• Single Director Ownership: The sole director holds 75-100% shares and voting rights, enabling swift decision-making and control.

4. Due Diligence Notes:

• Verify the nature and terms of the director’s loan and its repayment plan to assess related-party risk.
• Review detailed cash flow projections to evaluate the company’s ability to cover liabilities as they fall due, especially given the tight net asset position.
• Investigate the company's business model sustainability and client base under SIC code 71122 (engineering related consulting), including contracts or pipeline to confirm future revenue generation.