Company Number: 14518544

Analysis Date: 2025-07-20 17:08 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its significant net liabilities position, negative working capital, and reliance on shareholder financial support to continue as a going concern.

2. Key Concerns:

• Solvency Issues: The company’s net liabilities stand at £70,065 with total liabilities exceeding total assets, indicating financial distress and potential insolvency risk if external support ceases.
• Liquidity Shortfall: Negative net current assets of £43,044 suggest the company does not have sufficient liquid assets to cover short-term obligations, raising concerns over its ability to meet immediate liabilities.
• Going Concern Dependence: The directors acknowledge that the accounts are prepared on a going concern basis solely due to shareholder assurances of financial support, highlighting vulnerability if such support is withdrawn.

3. Positive Indicators:

• No Overdue Filings: The company is current with its statutory filing obligations for accounts and confirmation statements, indicating compliance with regulatory requirements.
• Single Shareholder Control: The sole director and 100% shareholder provides clear governance structure and potentially quicker decision-making.
• Asset Base: The company holds tangible and intangible assets (motor vehicles and franchise fees) valued at approximately £39,854, which could be leveraged or sold if necessary.

4. Due Diligence Notes:

• Financial Support Details: Verify the nature, extent, and duration of the shareholder’s financial support commitment to assess sustainability of going concern assumptions.
• Cash Flow Projections: Obtain management’s cash flow forecasts to evaluate the company’s ability to meet short-term liabilities without additional funding.
• Debt Terms and Covenants: Review loan agreements for repayment schedules, interest rates, security arrangements, and any covenant breaches that could trigger acceleration of liabilities.
• Operational Performance: Investigate revenue trends, profitability, and customer base stability since incorporation in December 2022 to determine business viability.
• Director Background: Confirm no adverse regulatory or conduct issues related to the director that could impact governance or operational stability.