Company Number: 14596878

Analysis Date: 2025-07-29 13:06 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits negative net current assets, minimal net assets, and a precarious liquidity position with current liabilities exceeding current assets. As a recently incorporated entity with limited financial history and modest equity, there is significant solvency risk.

2. Key Concerns:

• Negative working capital: Current liabilities (£236,406) surpass current assets (£229,402) resulting in a net current liability of £7,004, indicating potential liquidity issues.
• Minimal net assets (£107) and shareholders’ funds (£100) imply very limited financial buffer to absorb losses or meet unforeseen obligations.
• High taxation and social security creditor balance (£129,070) within current liabilities may expose the company to regulatory and cash flow pressures if unsettled.

3. Positive Indicators:

• The company is compliant with statutory filing deadlines, with no overdue accounts or confirmation statements, suggesting good governance practices.
• Presence of a Chartered Accountant and Non-Executive Director (Richard John Peers) on the board may strengthen financial oversight.
• The company operates in a professional services sector (architectural activities, SIC 71111) which typically requires lower capital intensity and can generate steady fee income.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities, particularly tax and social security accruals, to understand if these are payable imminently or if payment plans exist.
• Review recent cash flow statements and forecasts to assess the company’s ability to service short-term obligations and the sustainability of operations.
• Examine contracts, client base, and pipeline to evaluate revenue stability and growth prospects given the company’s infancy and low equity base.
• Confirm no director disqualifications or adverse conduct records for all current directors and Persons with Significant Control.
• Assess related party transactions given multiple directors share the same address and have significant control, to rule out governance or conflict of interest concerns.