Company Number: 14803103

Analysis Date: 2025-07-20 19:17 UTC

1. Risk Rating: LOW to MEDIUM
   The company is newly incorporated (less than one year old) but shows a positive net asset position and no overdue filings, suggesting early financial stability. However, limited operating history and a director loan balance introduce some caution.

2. Key Concerns:

• Director Loan Account: There is a significant director loan (£37,874) outstanding, which could imply reliance on related-party funding rather than external financing. This may affect liquidity if not properly managed.
• Limited Trading History and Scale: Incorporated in April 2023, with no employees and modest assets, the company’s operational track record is minimal, increasing uncertainty about sustainable revenue generation.
• Profit and Loss Account Not Filed: The profit and loss account has not been delivered to Companies House as noted in the accounts, limiting comprehensive assessment of profitability and cash flow performance.

3. Positive Indicators:

• Positive Net Current Assets and Net Assets: Current assets of £4,320 exceed current liabilities of £423, yielding net current assets of £3,897 and shareholders’ funds of £4,161, indicating a solvent balance sheet at the reporting date.
• Timely Compliance: No overdue filings for accounts or confirmation statements, demonstrating adherence to statutory obligations and reducing regulatory risk.
• Full Control by Single Director: Xxxxxx Xxxxxxxxname shown to subscribers owns 75-100% of shares and voting rights, ensuring clear governance and decision-making lines.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan to assess repayment risk and impact on cash flow.
• Review detailed profit and loss data (if available) or management accounts to better understand revenue streams, profitability, and cash flow trends since incorporation.
• Confirm whether there are any contingent liabilities or off-balance sheet commitments not disclosed in the accounts.
• Assess the business model viability within the SIC code 81229 (other building and industrial cleaning activities), including client contracts and market positioning.
• Verify any related party transactions and ensure compliance with governance standards given single director ownership.