Company Number: 14418264

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

1. Risk Rating: MEDIUM
   Justification: The company is newly incorporated with modest net assets (£7,698) and current assets barely exceeding current liabilities, indicating a limited financial buffer. The presence of significant tax liabilities and director advances suggest potential short-term liquidity pressures. However, there are no overdue filings or signs of insolvency.

2. Key Concerns:

• Liquidity Risk: Cash at bank is low (£6,460) relative to current liabilities (£41,962), with a large portion of current assets tied up in trade debtors (£43,200). This indicates a dependency on timely collection of receivables to meet obligations.
• Tax Liabilities: Corporation tax payable (£21,875) and social security/tax debts (£13,988) form the bulk of current liabilities, which may strain cash flows if not managed carefully.
• Limited Operational History and Scale: Incorporated in late 2022, the company has a very short trading history and minimal tangible assets (net nil after depreciation), which limits assessment of operational sustainability.

3. Positive Indicators:

• Compliance: The company has up-to-date accounts and confirmation statements with no overdue filings, suggesting good regulatory compliance.
• Ownership and Control: The sole director and majority shareholder are the same individual, potentially facilitating swift decision-making.
• Net Positive Working Capital: Despite tight margins, net current assets are positive (£7,698), indicating short-term solvency.

4. Due Diligence Notes:

• Verify aging and collectability of trade debtors (£43,200) to assess actual liquidity risk.
• Confirm the nature and timing of tax liabilities to understand payment schedules and potential penalties.
• Review cash flow forecasts and business plans to evaluate operational sustainability beyond the initial trading period.
• Assess the director’s advances and related party transactions to ensure no undue financial exposure or conflicts.
• Monitor the company’s ability to generate revenue and profits in subsequent periods given the limited asset base.