Company Number: 14721775

Analysis Date: 2025-07-20 16:37 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows positive net current assets but has a significant decline in shareholders' funds from £3,530 in 2024 to only £198 in 2025, indicating potential erosion of equity. The company is newly incorporated with limited operating history, increasing uncertainty. Director loans and repayment timing require scrutiny.

2. Key Concerns:

• Sharp decline in shareholders' funds in the latest reported year, potentially signaling losses or capital withdrawals.
• Reliance on director advances (£6,047 due from director as at 31 March 2025) which may indicate liquidity constraints or informal funding arrangements.
• Limited financial history as a very recently incorporated entity (March 2023) restricting the ability to assess operational sustainability and trends.

3. Positive Indicators:

• Net current assets remain positive (£3,074 in 2025), suggesting the company can meet short-term liabilities.
• All statutory filings (accounts and confirmation statements) are up to date, indicating regulatory compliance.
• No indications of insolvency, liquidation, or director disqualifications.
• The company operates in management consultancy, a sector generally requiring low capital investment, which may support operational flexibility.

4. Due Diligence Notes:

• Investigate the cause of the significant drop in shareholders’ funds between 2024 and 2025, including reviewing profit and loss details not provided here.
• Clarify the nature and terms of the director’s loan, including timing and impact on cash flow and solvency. Note that the loan was repaid shortly after the year end, which may affect liquidity assessment.
• Review any contractual commitments or off-balance-sheet liabilities that could affect financial stability.
• Assess the company's business plan and cash flow forecasts given its very recent incorporation and limited trading history.
• Confirm no related party transactions or contingent liabilities exist beyond the director loan disclosed.