Company Number: 15024832

Analysis Date: 2025-07-29 13:06 UTC

1. Risk Rating: HIGH
   The company shows significant net liabilities shortly after incorporation, with net current liabilities of £22,266 and net assets of -£7,866 as of the latest accounts. This indicates an immediate solvency risk given the negative working capital and overall negative equity.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company’s net liabilities position and negative net current assets suggest difficulty in meeting short-term obligations.
• Newly Incorporated with Limited Operating History: Incorporated in July 2023, the company has minimal financial track record and only one reporting period completed, limiting insight into operational sustainability.
• Director Changes and Control Concentration: The sole current director was appointed only recently (May 2024), replacing previous directors, and there is a concentration of control with one individual holding 75-100% ownership, which may pose governance and succession risks.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date on its accounts and confirmation statement filings, indicating good regulatory compliance to date.
• Micro-Entity Reporting Simplifies Transparency: Use of micro-entity provisions means accounts are simplified, but this also limits insight into detailed financials, which is typical for very small companies.
• Low Employee Count: Operating with just one employee may indicate low fixed overheads, potentially easing cash flow pressures if revenue is generated.

4. Due Diligence Notes:

• Investigate the source and nature of current liabilities to assess whether they are trade creditors, loans, or director loans, and their repayment terms.
• Review cash flow projections or management accounts to understand liquidity trends since the last reporting date.
• Assess the business model and market demand for the company’s activities under SIC codes 82990 (business support services) and 56101 (licensed restaurants) to evaluate operational viability.
• Examine reasons behind director resignations and recent appointment to understand management stability and governance.
• Confirm the relationship and financial arrangements between the two major shareholders/controllers to clarify potential related-party transactions.