Company Number: 14721909

Analysis Date: 2025-07-20 15:49 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant liquidity concerns with current liabilities exceeding current assets by a substantial margin (£54,319 vs £16,175), resulting in negative net current assets (-£38,144). The net assets are nominal (£488), indicating very limited capital buffer. This financial position suggests a potential inability to meet short-term obligations without additional financing or operational improvements.

2. Key Concerns:

• Negative working capital: Current liabilities exceed current assets by over £38k, which is a critical liquidity red flag.
• Minimal net assets and shareholders’ funds (£488) indicate very limited financial resilience against losses or unexpected expenses.
• The company is newly incorporated (March 2023) with only one financial year reported, limiting the ability to assess operational stability or profitability trends.

3. Positive Indicators:

• The company is compliant with filing deadlines; accounts and confirmation statements are up to date, reflecting good regulatory compliance.
• Director and PSC information indicates a single controlling stakeholder with full ownership and control, which may facilitate swift decision-making.
• The business is categorized as a micro-entity, which typically means limited overhead and simpler operations.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities to understand payment obligations and potential risks of default.
• Review cash flow statements or bank statements (if available) to assess liquidity management and operational cash generation.
• Inquire about any capital injections or planned financing to support liquidity and working capital needs.
• Assess the business model viability given limited financial history and negative working capital, including customer base and revenue streams.
• Confirm there are no undisclosed contingent liabilities or off-balance-sheet obligations.
• Verify the director’s track record and any related party transactions given sole ownership.