Company Number: 14759600

Analysis Date: 2025-07-19 12:07 UTC

1. Risk Rating: MEDIUM
   The company is relatively new (incorporated 2023) and classified as a micro-entity. Its net assets have improved from negative (£-4,806) to positive (£6,617) over the latest financial year, which is a positive sign. However, the presence of significant long-term liabilities (£129,330) relative to total assets and current assets (£13,408) raises moderate solvency concerns given the small scale of operations and limited liquidity.

2. Key Concerns:

• High long-term liabilities: The company carries a substantial creditor balance due after more than one year (£129,330), which may pressure future cash flows and solvency if not managed prudently.
• Low current assets and working capital: Current assets dropped significantly from £76,149 to £13,408, although current liabilities are minimal this year (£1,515), the low liquidity buffer could present cash flow challenges.
• Director’s loan turnover: The director’s loan of £14,029 was repaid during the year, indicating prior reliance on director financing, which may suggest initial funding constraints or cash flow issues.

3. Positive Indicators:

• Net assets positive and improving: The company turned around net liabilities to net assets over the year, indicating progress in financial stability.
• No overdue filings: Both accounts and confirmation statement filings are up to date, implying good regulatory compliance.
• Single director ownership: Full control by a single director/PSC may facilitate swift decision-making and strategic alignment.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities to assess repayment risk and potential impact on solvency.
• Review cash flow statements and forecasts to understand liquidity management given the sharp reduction in current assets.
• Clarify the operational model and revenue streams given the micro-entity status and limited employee count (average 1 employee), to evaluate sustainability.
• Confirm whether any related party transactions exist beyond the director’s loan and assess their impact on financial health.