Company Number: 13826805

Analysis Date: 2025-07-20 12:42 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits extremely minimal net assets (£1) and current liabilities nearly equal to current assets, indicating a very tight working capital position. The absence of meaningful equity and limited cash reserves heighten solvency and liquidity risks, especially given the company’s recent incorporation and very small scale of operations.

2. Key Concerns:

• Minimal Net Assets and Equity: With net assets of only £1 and shareholders’ funds also £1, the company lacks a financial buffer to absorb losses or support growth.
• Liquidity Position: Current assets of £7,838 barely cover current liabilities of £7,837, leaving negligible working capital and limited cash (£3,572) for operational needs.
• Scale and Operational Capacity: The company employs only one person (the director) and has no significant fixed assets, which questions its operational sustainability and ability to generate meaningful revenue or scale business activities.

3. Positive Indicators:

• Timely Filing and Compliance: The company is current on accounts and confirmation statement filings, indicating good regulatory compliance and governance discipline.
• Clear Ownership and Control: Single director and 100% ownership by Mr. David John Alexander Service provide clear accountability and decision-making authority.
• Going Concern Assertion: The director has prepared the accounts on a going concern basis, implying no immediate threat to the business continuity identified at reporting date.

4. Due Diligence Notes:

• Review cash flow statements and bank reconciliations to assess liquidity trends and operational cash generation capacity.
• Investigate nature and collectability of trade debtors (£4,266) given their materiality relative to total assets.
• Evaluate business model, contracts, and pipeline to determine prospects for revenue growth and profitability.
• Confirm absence of director disqualifications or adverse regulatory actions on the individual responsible for governance.
• Monitor subsequent trading performance and any capital injections or financing arrangements.