Company Number: 14402257

Analysis Date: 2025-07-20 18:24 UTC

1. Risk Rating: MEDIUM
   The company shows very limited net assets and negative net current assets as of the latest financial year, indicating potential liquidity constraints. However, it has remained compliant with filing requirements and has a single director/shareholder, which reduces governance complexity.

2. Key Concerns:

• Negative net current assets (£-130) as of 31 Oct 2024 suggest the company’s current liabilities exceed current assets, posing liquidity risk to meet short-term obligations.
• Very small net asset base (£116) with minimal fixed assets and working capital may limit the company’s financial resilience and ability to absorb shocks.
• The company has only one employee (the director) and limited operational history since incorporation in late 2022, raising questions about operational scale and sustainability.

3. Positive Indicators:

• All statutory filings (accounts and confirmation statements) are up to date with no overdue filings or penalties, indicating sound regulatory compliance.
• Shareholder and director is the same individual with 75-100% control, minimizing potential conflicts in governance or control disputes.
• Current assets increased substantially from £3,238 in 2023 to £6,245 in 2024, showing some growth in asset base.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess liquidity risk and whether the company can meet upcoming obligations.
• Review cash flow statements (if available) or bank statements to better understand cash management and operational cash flows.
• Understand the business model and revenue generation given the micro-entity scale and limited employees to evaluate operational sustainability.
• Confirm absence of any contingent liabilities or off-balance-sheet obligations not reflected in accounts.
• Validate the director’s background and capacity to grow the business given sole control and responsibility.