Company Number: 14662960

Analysis Date: 2025-07-29 19:11 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (2023) with limited financial history. Although it shows positive net current assets and shareholders’ funds, the overall scale is very small, and cash balances have decreased significantly in the latest year. The presence of director loans and relatively high taxation/social security creditors raise moderate concerns about short-term liquidity and operational cash flow.

2. Key Concerns:

• Liquidity Pressure: Cash dropped from £9,712 to £3,728 year-on-year, despite net current assets remaining positive. Taxation and social security creditors (£7,792) are sizeable relative to cash, suggesting potential timing issues in meeting obligations.
• Reliance on Director Funding: The company has a director loan balance of £4,840 as of 2025, indicating reliance on director advances to support operations. This can be a risk if the director is unable or unwilling to continue funding.
• Limited Scale and Operating History: With only 1 employee (the director) and minimal assets, the business scale is small and early stage. This raises questions about sustainability and ability to absorb shocks or grow.

3. Positive Indicators:

• Positive Net Current Assets and Net Assets: The company shows a small but positive net current asset position (£776) and net assets (£776), indicating it is not currently insolvent.
• Timely Filing and Compliance: There are no overdue filings for accounts or confirmation statements, which suggests good compliance and governance practices to date.
• Full Control by a Single Director: The sole director and 75-100% shareholder Robert Sheppard maintains full control, which can facilitate decisive management and operational agility at this stage.

4. Due Diligence Notes:

• Investigate the nature of taxation and social security liabilities to understand payment schedules and potential risks of arrears or penalties.
• Review the sustainability and terms of director loans, including repayment plans and impact on cash flow.
• Assess revenue generation, client base, and order pipeline to evaluate the viability and growth prospects of the specialised design activities business.
• Confirm no undisclosed contingent liabilities or off-balance sheet obligations exist.
• Monitor cash flow trends closely in future filings to detect any worsening liquidity position.