Company Number: 14120638

Analysis Date: 2025-07-29 14:18 UTC

1. Risk Rating: HIGH
   The company exhibits a significant solvency risk with negative net assets and net current liabilities as of the last financial year. The level of current liabilities exceeds current assets by £11,144, indicating potential difficulty in meeting short-term obligations.

2. Key Concerns:

• Negative Net Assets: Shareholders’ funds are reported as -£11,144, signaling accumulated losses and erosion of capital.
• Working Capital Deficit: Current liabilities (£36,500) substantially exceed current assets (£25,356), which implies liquidity stress.
• Limited Operational History: Incorporated in 2022 with only one employee and limited financial data, the company’s operational sustainability is uncertain.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, suggesting regulatory adherence.
• Ownership Control: Concentrated ownership by a single individual with full control may facilitate swift decision-making.
• Small Company Exemption: The company has utilized small company reporting provisions, reducing audit burden and associated costs.

4. Due Diligence Notes:

• Investigate nature and terms of current liabilities to assess urgency and risk of default.
• Review cash flow projections and management plans to address the working capital deficit.
• Assess client base, contract stability, and growth strategy given the company’s bookkeeping services and recent incorporation.
• Confirm absence of director disqualification or adverse regulatory actions for the current director.
• Clarify reasons for negative retained earnings and any associated contingencies or provisions.