Company Number: 14935837

Analysis Date: 2025-07-29 16:27 UTC

1. Risk Rating: MEDIUM

   Although the company is newly incorporated and classified as a micro-entity with limited financial data, the balance sheet reveals a significant level of long-term liabilities relative to net assets, indicating potential solvency risks. The absence of audit and limited operational history adds some uncertainty.

2. Key Concerns:

   • High Long-Term Creditors: £384,733 of liabilities due after more than one year against net assets of only £5,806 suggests leverage that may impair solvency if cash flows are insufficient.
   • Limited Current Assets and Working Capital: Current assets (£1,077) are minimal, and although net current assets report £14,539 (likely including prepayments), liquidity could be tight for short-term obligations.
   • Early Stage with No Revenue Data: As a company incorporated in June 2023, there is no indication of revenue or profit generation yet, making operational sustainability unclear.

3. Positive Indicators:

   • Compliance with Filings: Both annual accounts and confirmation statements are up to date, reducing regulatory risk.
   • Ownership and Control Transparency: Clear identification of two significant shareholders with control rights, including the director, indicates governance transparency.
   • Fixed Asset Base: Ownership of fixed assets valued at £376,000 could provide collateral or a foundation for business operations.

4. Due Diligence Notes:

   • Investigate the nature and terms of the long-term creditors to assess repayment obligations and covenants.
   • Clarify the business model and revenue streams, as no turnover or profit data is available yet.
   • Review cash flow projections and funding plans to understand how the company intends to manage working capital and service debt.
   • Confirm whether fixed assets are encumbered and their liquidity in case of distress.
   • Check on director background and track record beyond Companies House records for potential governance issues.