Company Number: 15257777

Analysis Date: 2025-07-29 13:34 UTC

1. Risk Rating: HIGH

Justification: The company's financials reveal significant solvency and liquidity concerns, with current liabilities vastly exceeding current assets resulting in a large net current liability. The company is newly formed with limited operating history and relies heavily on investment in subsidiaries, which heightens operational risk.

2. Key Concerns:

• Severe Liquidity Mismatch: Current assets of £1,657 versus current liabilities of £506,010 create a net current liability of £504,353. This indicates an inability to meet short-term obligations from available liquid resources.
• Concentration Risk in Investments: Fixed assets are almost exclusively investments in a group undertaking valued at £1,005,000, exposing the company to risks tied to the subsidiary’s performance.
• No Operating Activity or Revenues Yet: The company reports no employees and no income statement information, implying it is in an early stage without demonstrated operational sustainability.

3. Positive Indicators:

• No Filing or Compliance Issues: Accounts and confirmation statements are filed on time with no overdue submissions, suggesting compliant governance practices.
• Clear Ownership and Management: The company has identifiable directors and a majority shareholder controlling 75-100% of shares, facilitating decision-making.
• Strong Equity Base: Shareholders funds of £500,647, mainly from retained earnings and investments, indicate initial capital injection backing the company.

4. Due Diligence Notes:

• Investigate the nature and financial health of the subsidiary(ies) represented by the £1,005,000 investment to assess risk exposure.
• Clarify the source and terms of the £506,010 current liabilities, particularly the £505,000 in other creditors, to understand repayment obligations and timing.
• Review cash flow projections and operational plans, as the absence of income and employees raises questions about business model viability.
• Confirm whether any contingent liabilities or off-balance sheet commitments exist that could worsen financial risk.
• Assess director backgrounds for any past conduct or disqualifications, though none are indicated here.