Company Number: 15200979

Analysis Date: 2025-07-29 15:58 UTC

1. Risk Rating: MEDIUM
   Justification: The company is newly incorporated with a very limited financial history and minimal equity (£422). Current liabilities are close to current assets, indicating tight working capital. However, there are no overdue filings or signs of distress at this early stage.

2. Key Concerns:

   • Low Equity Base: Shareholders’ funds of £422 signal limited financial buffer against operational risks or unexpected expenses.
   • Tight Liquidity Position: Cash balance is only £179 with current liabilities at £4,757 nearly matching current assets, raising potential short-term liquidity risk.
   • Concentration of Control: Single director and 75-100% shareholder concentration increases dependency on one individual and may affect governance and decision-making robustness.

3. Positive Indicators:

   • Compliance: No overdue filings for accounts or confirmation statements indicate good compliance with statutory requirements.
   • Clear Industry Focus: Registered under SIC 71121, the company operates in a technical niche (engineering design), which may provide specialized market opportunities.
   • No Indication of Insolvency: The company is active and not under liquidation, administration, or receivership.

4. Due Diligence Notes:

   • Verify the nature and collectability of debtors (£5,000), which constitute a significant portion of current assets.
   • Investigate the business plan and cash flow forecasts to understand how the company plans to improve liquidity and equity base.
   • Assess the background and capacity of the sole director and shareholder to manage operational and financial risks effectively.