Company Number: 14062525

Analysis Date: 2025-07-19 12:35 UTC

1. Risk Rating: MEDIUM
   The company has recently moved from a negative net asset position to marginally positive net assets, but the net asset value remains very low (£1,089), indicating minimal equity buffer. Current liabilities are nearly equal to current assets, suggesting tight liquidity. Limited financial and operational history as a micro-entity incorporated in 2022 adds uncertainty.

2. Key Concerns:

• Very low net asset base: The company’s net assets are barely positive, which could restrict its ability to absorb financial shocks or losses.
• Liquidity tightness: Current assets (£405,692) just exceed current liabilities (£403,320), leaving a minimal working capital cushion of £3,008. This poses potential short-term cash flow risks.
• Limited operational track record and employee base: With only one employee and incorporation in 2022, there is limited evidence of operational sustainability or revenue diversification.

3. Positive Indicators:

• Improved financial position in latest year: Net assets improved significantly from negative £13,958 to positive £1,089 within one year, suggesting recent capital infusion or improved operations.
• No overdue filings or compliance issues: Accounts and confirmation statements are filed on time, indicating good regulatory compliance.
• Stable and experienced management: Two current directors have been in place since incorporation, with no records of disqualification or governance concerns.

4. Due Diligence Notes:

• Clarify nature and source of the large increase in current assets between 2023 and 2024 (from £42,716 to £405,692) and whether these are cash or receivables.
• Examine the composition and timing of current liabilities to assess short-term payment obligations and liquidity management.
• Review business model and contracts to confirm revenue generation and operational sustainability given the micro-entity classification and small staff complement.
• Investigate any related party transactions given the family-named directors and shareholders with significant control.