Company Number: NI702105

Analysis Date: 2025-07-20 13:13 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and working capital, indicating solvency at the reporting date. However, the presence of significant accruals and deferred income relative to net current assets, coupled with its very recent incorporation and limited trading history, heightens uncertainty around ongoing liquidity and operational stability.

2. Key Concerns:

• The company was incorporated less than a year ago (September 2023), so it lacks a proven operational track record.
• Accruals and deferred income (£19,595) reduce net assets substantially, which may indicate obligations or income recognition timing issues impacting liquidity.
• Reliance on a single director and sole shareholder increases key person risk and operational vulnerability.

3. Positive Indicators:

• Positive net current assets of £32,084 and net assets of £19,508 demonstrate an initial capital buffer.
• No overdue filings or reported compliance issues; accounts and confirmation statement are up to date.
• The company’s micro-entity status reduces administrative burden and indicates a small, manageable operation with low fixed asset intensity.

4. Due Diligence Notes:

• Verify the nature and timing of accruals and deferred income to assess their impact on near-term cash flows and obligations.
• Review cash flow forecasts and any financing arrangements, given limited trading history.
• Assess the business model feasibility and client contracts, especially given the SIC codes indicating specialised design and retail activities.
• Consider the director’s experience and capacity to maintain operational stability in a small, newly formed company.