Company Number: 15611461

Analysis Date: 2025-07-29 20:50 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and net assets of £(2,474) in its first financial year despite being micro-entity sized. This indicates immediate solvency concerns and inability to meet short-term liabilities from current assets.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£3,259) exceed current assets (£785) by a significant margin, leading to a working capital deficit of £(2,474). This suggests liquidity stress and potential cash flow difficulties.
• Negative Net Assets: The company’s net assets and shareholders’ funds are negative, indicating an erosion of equity which can impair operational sustainability and financing options.
• Early Stage with Limited Financial History: Incorporated in April 2024 and reporting first accounts for 13 months, there is limited financial track record to assess operational viability or revenue generation, adding uncertainty.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statement filings are up to date and not overdue, showing good governance on statutory compliance.
• Single Director with Full Control: Clear ownership and control by one individual (Elvira Da Costa Barreto Aguiar) may streamline decision making and accountability.
• Micro Entity Reporting: The company benefits from simplified reporting under FRS 105, which reduces administrative burden at this early stage.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and whether these include any director loans or related party transactions that might influence repayment terms.
• Assess planned revenue streams, business model viability, and management’s strategy to address negative working capital and restore positive equity.
• Verify whether there are any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Review cash flow projections and funding sources to confirm liquidity sustainability over the next 12 months.