Company Number: 14836350

Analysis Date: 2025-07-29 15:05 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets and net current liabilities, indicating a poor financial position and potential solvency risk. The large current liabilities relative to current assets suggest liquidity challenges. The company is newly incorporated with limited operating history, adding to operational risk.

2. Key Concerns:

• Negative Net Assets: The company’s net assets and shareholders’ funds are approximately -£52,000, indicating accumulated losses or undercapitalization.
• Liquidity Deficit: Current liabilities exceed current assets by £54,687, raising concerns about the company’s ability to meet short-term obligations.
• Limited Operational History: Incorporated in May 2023 and only one set of accounts filed, limiting visibility on ongoing business performance or revenue generation.

3. Positive Indicators:

• Compliance: The company has filed its accounts and confirmation statement on time, indicating regulatory compliance and attention to governance.
• Defined Business Activity: The SIC code 88100 reflects a focused niche in social work activities without accommodation, potentially targeting a defined market segment.
• Experienced Directors: Directors have relevant occupations (social workers and a manager), suggesting sector expertise aligned with the company’s activity.

4. Due Diligence Notes:

• Investigate the nature and maturity of the £53,925 other creditors to understand the composition and timing of liabilities.
• Clarify the company’s revenue streams and cash flow projections given the lack of turnover details and the negative working capital.
• Review any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.
• Assess directors’ plans and financial support mechanisms to address the negative equity and improve solvency.
• Confirm the absence of director disqualifications or regulatory sanctions given the new appointments and company status.