Company Number: 14974265

Analysis Date: 2025-07-20 14:21 UTC

1. Risk Rating: HIGH
   The company shows a critical liquidity concern with current liabilities (£45,072) exceeding current assets (£8,756), resulting in a negative net current asset position of -£36,316. Although net assets are positive at £1,120, the substantial shortfall in working capital indicates an inability to meet short-term obligations comfortably, posing a high solvency risk for investors.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities significantly exceed its current assets, implying cash flow stress and difficulties in meeting immediate debts.
• Early Stage with Limited Operating History: Incorporated in July 2023 and filing first accounts for a less than one-year period, the lack of financial history limits assessment of operational sustainability.
• Single Director and Shareholder Control: Mr. Reginald Lingam holds 75-100% shares and voting rights, which may raise governance and control risk concerns for external investors due to concentration of decision-making.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time with no overdue filings, indicating good regulatory compliance.
• Micro-entity Reporting: The company benefits from simplified reporting requirements appropriate for its size, reducing administrative burden.
• Modest Fixed Assets Base: Fixed assets of £38,269 suggest some investment in long-term resources, potentially indicating operational intent beyond mere trading.

4. Due Diligence Notes:

• Investigate the nature of current liabilities to understand timing and risk of defaults or renegotiations.
• Review cash flow statements or bank statements if available to assess actual liquidity and operational cash generation.
• Examine business plan and market prospects to evaluate sustainability and growth potential beyond the startup phase.
• Assess director’s background and experience given sole control and potential impact on governance and strategy.
• Confirm any off-balance sheet liabilities or related party transactions that may affect financial stability.