Company Number: 14788870

Analysis Date: 2025-07-20 14:39 UTC

1. Risk Rating: HIGH
   The company shows significant net current liabilities and negative net assets shortly after incorporation, indicating a precarious financial position and elevated solvency risk.

2. Key Concerns:

• Negative Net Assets and Working Capital: The balance sheet as of 30 April 2024 reports net current liabilities of £82,410 and net liabilities of £82,910, which suggests the company is insolvent on a balance sheet basis.
• Limited Capitalization: Share capital is only £100, insufficient to cover liabilities or absorb losses, which raises concerns about financial resilience.
• Operational Scale and Cash Flow: With only one employee and current assets of £21,294 versus liabilities over £103,000, the company may face liquidity challenges to meet short-term obligations.

3. Positive Indicators:

• No Filing Delinquencies: Both accounts and confirmation statement filings are up to date, indicating compliance with statutory requirements.
• Clear Ownership and Control: The sole director and 75-100% shareholder is identified, facilitating accountability and decision-making.
• Recent Incorporation: The company was incorporated in April 2023, so these financials cover just over one year of operations, with potential for improvement as the business matures.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities totaling £103,704 to understand whether these are trade payables, loans, or other obligations and their payment schedules.
• Review cash flow statements or management accounts (if available) to assess ongoing liquidity and operational cash inflows/outflows.
• Clarify the business model and revenue generation given the industry classification (gambling and betting activities) and early stage of the company.
• Assess the director’s plans for capital injection or restructuring to address the negative equity position.
• Confirm there are no undisclosed contingent liabilities or regulatory issues affecting operational viability.