Company Number: 14718266

Analysis Date: 2025-07-29 19:23 UTC

1. Risk Rating: MEDIUM

The company shows improving net assets and liquidity, with positive net current assets and cash balances. However, the presence of substantial long-term related party creditor balances (owing to the parent company) and a recent history of negative net assets indicate potential solvency concerns. The company is newly incorporated (2023) with limited financial history, adding uncertainty.

2. Key Concerns:

• Long-term Creditors to Parent Company: £260,986 owed to the parent company with no interest charged could indicate reliance on related party financing and potential future cash outflows.
• Previous Negative Net Assets: The company reported negative net assets in 2023 and 2022 (both -£20,419), only turning positive in 2024 (£69,558), which suggests prior financial stress.
• Limited Operational History: Incorporated in March 2023 with only one full year of accounts available limits the ability to assess operational stability and profitability trends.

3. Positive Indicators:

• Strong Liquidity Position: Cash at bank increased to £210,497 and net current assets improved significantly to £328,979 in 2024, indicating ability to meet short-term obligations.
• No Overdue Filings: Accounts and confirmation statements are filed on time, showing regulatory compliance and good governance.
• Low Employee Count and Controlled Cost Base: With only 2 employees on average and modest tangible fixed assets, operational expenses may be manageable.

4. Due Diligence Notes:

• Investigate the nature and terms of the related party creditor balance, including repayment plans and any contingent liabilities.
• Review cash flow statements and income statements (not included in filings) to assess profitability and operational cash generation.
• Confirm the company's contract pipeline and client base in environmental consulting to evaluate sustainability.
• Check for any director conduct or governance issues beyond the data provided.
• Assess any contingent liabilities or off-balance sheet exposures related to the parent company or group.