Company Number: NI695300

Analysis Date: 2025-07-20 18:38 UTC

1. Risk Rating: MEDIUM
   Justification: The company is newly incorporated (2023) and classified as a micro-entity with modest asset levels and limited equity. While it reports positive net assets (£50,943) and net current assets (£260,574), there is a significant amount of creditors falling due after one year (£267,590), which raises concerns about longer-term solvency. The absence of audit and limited financial history constrains full risk evaluation.

2. Key Concerns:

• Long-term creditor obligations: Creditors due after more than one year amount to £267,590, significantly exceeding net assets, which could pressure solvency if cash flows do not materialize as planned.
• Limited equity base: Share capital is minimal (£7), indicating a low buffer against losses and potential capital injection needs.
• New company with limited operating history: Incorporated less than two years ago, with only one set of financial statements filed, limiting trend analysis and operational performance assessment.

3. Positive Indicators:

• Positive net assets and net current assets: £50,943 net assets and £260,574 net current assets suggest a healthy short-term liquidity position to cover immediate liabilities.
• No overdue filings: Both accounts and confirmation statements are filed timely, indicating regulatory compliance and good governance practices.
• Experienced directors with relevant expertise: Directors include an IT consultant and an accountant, which may support sound operational and financial management.

4. Due Diligence Notes:

• Verify the nature and terms of long-term creditors to assess repayment schedules and potential refinancing risks.
• Obtain cash flow projections and budgets to evaluate liquidity sustainability beyond the reporting date.
• Review client contracts and revenue sources in the computer repair and retail sector to ascertain operational stability and market position.
• Confirm absence of director disqualifications or regulatory issues beyond Companies House filings.
• Request management commentary on strategic plans, capital structure, and any contingent liabilities not reflected in the accounts.