Company Number: 15220036

Analysis Date: 2025-07-19 12:32 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net assets and net current assets, indicating insolvency on a balance sheet basis. Current liabilities exceed current assets and prepayments, pointing to liquidity stress. The company is newly incorporated with minimal trading history and no employees, increasing operational risk.

2. Key Concerns:

• Negative net assets of £404 and net current liabilities of £813 suggest the company is insolvent under accounting definitions.
• Low current assets (£115) compared to current liabilities (£1,522), combined with prepayments (£594) that are unlikely to be liquid, raise serious liquidity concerns.
• No reported employees or operating history beyond incorporation in October 2023; this raises questions on operational viability and revenue generation capacity.

3. Positive Indicators:

• Compliance with filing deadlines: both accounts and confirmation statements are up to date, indicating good regulatory adherence.
• Sole director and 100% shareholder control by Mr. John David Rennison provides clear governance and streamlined decision-making.
• Micro-entity status reduces administrative burden and may reflect an early-stage business with a small scale.

4. Due Diligence Notes:

• Investigate the causes of negative net assets and whether these reflect initial setup costs, unpaid liabilities, or other structural issues.
• Clarify the nature of current liabilities and expected timing of settlement or conversion to longer-term debt.
• Review business plan, revenue projections, and funding sources to assess sustainability and ability to meet obligations.
• Confirm details behind prepayments and accrued income to determine their realizability as working capital.
• Assess background and financial strength of the sole director and shareholder to understand support capacity.