Company Number: 14364526

Analysis Date: 2025-07-20 16:08 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency and liquidity risks due to very high current liabilities relative to current assets and persistent negative net assets, indicating inability to meet short-term obligations comfortably.

2. Key Concerns:

• Large negative net current assets (£-478,425 as of 2024) and shareholders’ funds (£-82,425), showing the company is heavily indebted and technically insolvent on a balance sheet basis.
• Very low cash reserves (£4,130), which are insufficient to cover near-term liabilities of £482,555, posing immediate liquidity stress.
• The company is relatively new (incorporated 2022) with only one year of financials, limiting visibility on operational stability and track record.

3. Positive Indicators:

• The company holds tangible fixed assets valued at £396,000, which could potentially be leveraged or sold to improve liquidity or reduce liabilities.
• No overdue filings for accounts or confirmation statements, indicating compliance with regulatory filing requirements.
• Directors appear stable with no red flags such as disqualifications reported.

4. Due Diligence Notes:

• Investigate the nature and maturity profile of the current liabilities to assess potential refinancing or restructuring needs.
• Clarify the valuation and liquidity of the tangible fixed assets, and if they are encumbered or can be realized at stated value.
• Review any intercompany or related-party transactions that may explain the financial position or offer support.
• Obtain further information on the business model and revenue generation to assess future operational viability and cash flow prospects.
• Assess directors’ plans for addressing the negative equity and working capital deficit.