Company Number: 15156734

Analysis Date: 2025-07-20 13:30 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with net liabilities of £60,554 just over one year after incorporation. Current liabilities exceed current assets by £116,811, indicating liquidity stress. The negative equity and working capital deficit are red flags for financial stability at this early stage.

2. Key Concerns:

• Negative net assets and shareholders' funds: The company’s balance sheet shows net liabilities, suggesting it is technically insolvent on a balance sheet basis.
• Working capital deficit: Current liabilities (£232k) exceed current assets (£116k), implying potential difficulties meeting short-term obligations.
• Early stage of operation with limited financial track record: Incorporated in September 2023, only one set of unaudited accounts is available, limiting assessment of operational sustainability and cash flow generation.

3. Positive Indicators:

• Director’s confidence in going concern: The director states the company has adequate resources to continue as a going concern, though this is unverified by audit.
• No overdue filings: Both accounts and confirmation statements are up to date, indicating compliance with regulatory filing requirements.
• Full control by a single director/PSC: Mr. Adam John Harling-Brown owns 75-100% of shares and controls the company, potentially facilitating swift decision-making and capital support.

4. Due Diligence Notes:

• Verify the nature and timing of current liabilities to understand immediate cash flow demands and creditor composition.
• Investigate sources of funding or capital injections planned or secured to cover the negative net asset position.
• Review detailed cash flow forecasts and contracts to assess sustainability and ability to generate positive net cash inflows.
• Confirm director’s financial support and any related party transactions, including the disclosed director advance of £5,973.
• Assess business plan viability given the construction and development SIC codes, especially in the current economic climate.