Company Number: 14866372

Analysis Date: 2025-07-19 12:14 UTC

1. Risk Rating: HIGH
   Distinct Competitions Ltd shows significant financial distress indicators with net liabilities of £5,172 and negative net current assets of £4,538 as of the latest financial year end. The company is still in its first year of operation, and the financials reflect initial losses and insufficient working capital, increasing solvency and liquidity risk.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company’s current liabilities exceed its current assets by £4,538, indicating an inability to cover short-term obligations with available liquid assets.
• Lack of Financial Buffer: With only £427 in current assets and no fixed assets reported, the company appears undercapitalized and reliant on external funding or director support.
• Single Director and Shareholder Control: Ryan Earl Waters controls 100% of shares and voting rights, which concentrates operational and governance risk, especially for a start-up with reported losses.

3. Positive Indicators:

• Compliance with Filing Deadlines: Both accounts and confirmation statement filings are up to date, mitigating regulatory risk.
• Micro-entity Reporting: The use of micro-entity provisions reduces administrative burden, appropriate for the company’s size and age.
• Clear Ownership and Management: Transparency in control and directorship may facilitate prompt decision-making.

4. Due Diligence Notes:

• Investigate the company’s cash flow projections and funding sources to assess ongoing operational viability.
• Review any related party transactions or director loans that may support liquidity.
• Assess business model and market potential given the SIC code classification (other retail sale not in stores, stalls or markets) to understand revenue prospects.
• Confirm absence of any director disqualifications or legal proceedings against the controlling individual.
• Obtain management commentary or strategic plans to gauge prospects for reversing current negative equity.