Company Number: 15170537

Analysis Date: 2025-07-20 18:26 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets (£-10,598) and net current liabilities (£-10,048) shortly after incorporation, indicating poor financial health and potential solvency issues.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company’s liabilities exceed its assets by over £10,000, suggesting it may struggle to meet short-term and long-term obligations.
• Newly Incorporated with Limited Operating History: Incorporated in September 2023 with only one year of accounts, limiting evidence of operational stability or revenue generation.
• Single Director and Shareholder Concentration: Full ownership and control by one individual may pose governance risks and concentration risk without broader oversight.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s accounts and confirmation statement filings are up to date and not overdue, indicating regulatory compliance.
• Micro Entity Status: Low overhead and simplified reporting requirements consistent with a small-scale business, potentially reducing complexity.
• Clear Industry Classification: Engaged in the sale of used cars and light motor vehicles (SIC 45112), a defined and understandable business sector.

4. Due Diligence Notes:

• Investigate the nature and source of the company’s liabilities to assess if they are short-term debts, trade payables, or shareholder loans.
• Review cash flow statements or bank statements (if available) to understand liquidity position and ability to operate day-to-day.
• Assess business plan and revenue projections to determine prospects for improving financial position.
• Understand the director’s background, particularly given sole control, to evaluate management capability and integrity.
• Confirm whether there have been any related party transactions or contingent liabilities not reflected in the accounts.