Company Number: OC450290

Analysis Date: 2025-07-29 18:29 UTC

1. Risk Rating: HIGH
   Justification: The company has recently incorporated (December 2023) with a very limited operational history. Its latest financials show negative members’ interests (equity) of £-2,524, indicating that liabilities exceed assets. There are no current assets or net current assets reported, and members’ loans of £2,524 are classified as debt, suggesting reliance on member funding with no clear revenue generation yet. The absence of employees and minimal financial activities coupled with operating lease commitments of £15,000 pose liquidity and operational sustainability concerns.

2. Key Concerns:

• Negative net assets and shareholders’ funds indicate initial capital deficiency and potential solvency risk.
• No turnover or employees reported to date, raising questions about operational progress and business viability.
• Future non-cancellable operating lease commitments of £15,000 may strain liquidity given lack of current revenue or working capital.

3. Positive Indicators:

• The company is fully compliant with filing requirements; accounts and confirmation statements are up to date and not overdue.
• The LLP structure limits personal liability of members, mitigating personal financial risk.
• The members (David and Mary Dixon) are clearly identified as designated members and persons of significant control, suggesting transparency in governance.

4. Due Diligence Notes:

• Investigate the business plan and revenue projections to understand the timeline for achieving profitability and positive cash flow.
• Review the nature and terms of the £15,000 operating lease commitment to assess financial obligations and potential options to mitigate cash outflows.
• Confirm the extent and nature of members’ loans and any contingent liabilities or guarantees that may impact solvency.
• Clarify the absence of turnover and employees—is the company still in start-up phase or dormant operationally?
• Verify the robustness of internal controls and financial management given the LLP is exempt from audit and has small entity reporting.