Company Number: 14397603

Analysis Date: 2025-07-29 13:44 UTC

1. Risk Rating: MEDIUM

Justification: The company is relatively new (incorporated in late 2022) and small (micro-entity classification). Net assets have declined sharply from £25,362 in 2023 to £3,260 in 2024, primarily due to a significant increase in long-term creditors (from £20,526 to £57,877). While current assets exceed current liabilities, the rise in non-current liabilities poses solvency concerns. No audit has been carried out, limiting financial transparency.

2. Key Concerns:

• Sharp increase in creditors falling due after more than one year (long-term liabilities) from £20,526 to £57,877 within one year, reducing net equity and potentially impairing solvency.
• Significant drop in shareholders’ funds and net assets in the latest financial year, indicating possible financial distress or increased leverage.
• Zero employees reported in 2024 compared to one in 2023, which may raise questions about operational sustainability and business activity.

3. Positive Indicators:

• Current assets exceed current liabilities in both years, with net current assets improving from £45,888 to £61,137, suggesting reasonable short-term liquidity.
• The company remains active with no overdue filings for accounts or confirmation statements, indicating compliance with statutory requirements.
• Ownership and control are consolidated under a single director with a substantial stake, potentially allowing for streamlined decision-making.

4. Due Diligence Notes:

• Investigate the nature and terms of the increased long-term creditors to assess repayment obligations, interest costs, and potential refinancing risks.
• Review any underlying business activities or contracts that support the company’s ability to generate cash flow and service liabilities given the reduction in net assets.
• Confirm the absence of audit or independent review and consider requesting management accounts or additional financial information to evaluate financial health.
• Assess why the company has no employees in the latest period and determine if the business is operational or reliant on outsourcing/contractors.
• Verify director background and any related-party transactions given the high concentration of control and recent director appointment.