Company Number: 14761421

Analysis Date: 2025-07-20 18:27 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits negative net assets (£-6,353) and significant long-term liabilities (£139,036) exceeding total assets, indicating solvency concerns. The micro-entity classification and absence of employees suggest limited operational scale and resource base.

2. Key Concerns:

• Negative equity position: Shareholders' funds are negative, implying that liabilities exceed assets which poses a solvency risk.
• High long-term creditor balance (£139,036) compared to fixed assets (£192,485) with negligible current assets (£326) and negative working capital (£-59,802) signals potential liquidity difficulties to meet short-term obligations.
• Very limited operational activity: No employees, minimal current assets, and micro-entity status point to a business that may not yet be generating meaningful revenue or cash flow, raising sustainability questions.

3. Positive Indicators:

• The company is current on statutory filings (accounts and confirmation statements) with no overdue returns, reflecting compliance with regulatory requirements.
• Directors are identifiable professionals (doctor and tax adviser) which may imply competent governance and oversight.
• Ownership and control are clearly defined among two directors, which could facilitate decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the £139k long-term creditor balance to assess repayment obligations and any security interests.
• Review the business plan and revenue model given the early stage (incorporated 2023) and micro-entity classification to understand sustainability prospects.
• Confirm whether there are any contingent liabilities or off-balance sheet obligations not reflected in these accounts.
• Assess directors' plans for improving liquidity and solvency, including potential capital injections or asset sales.
• Verify the status and use of fixed assets (£192,485) to ensure they are productive and properly valued.