Company Number: 14215485

Analysis Date: 2025-07-29 18:03 UTC

1. Risk Rating: HIGH
   The company exhibits negative net current assets and net assets, with liabilities exceeding assets by a significant margin. This indicates financial distress and a high risk of insolvency if current trends persist.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£21,487) substantially exceed current assets (cash £1,681), resulting in a negative net current asset position (-£19,806). This raises immediate liquidity concerns.
• Consistent Losses Accumulated: The profit and loss account shows an increasing deficit (-£19,906 in 2024, worsening from -£12,533 in 2023), indicating ongoing operational losses and erosion of shareholder funds.
• Very Low Cash Reserves: Cash at bank is nominal (£1,681), insufficient to cover short-term obligations, suggesting potential cash flow difficulties.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both accounts and confirmation statement filings, indicating regulatory compliance and good governance in this respect.
• Growing Workforce: Average number of employees increased from 0 in 2023 to 4 in 2024, which may indicate operational expansion or increased business activity.
• No Audit Requirement: Classified as a small company, it benefits from abridged accounts and exemption from audit, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and creditor terms to assess immediate repayment obligations and potential for restructuring.
• Review management’s plans or cash flow forecasts to understand how they intend to address the negative working capital and accumulated losses.
• Examine turnover, profitability, and cash generation trends beyond the abridged accounts to assess operational sustainability.
• Confirm there are no director disqualifications or governance issues not disclosed in the available data.
• Assess the impact, if any, of the company’s short operational history (incorporated 2022) on financial performance and stability.