Company Number: 14803368

Analysis Date: 2025-07-20 19:14 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant net current liabilities (£248,787) against modest cash (£31,474), and overall negative equity (£1,067). This indicates potential solvency and liquidity issues that may impair its ability to meet short-term obligations. Additionally, the company is newly incorporated (2023) and has substantial related party debt, which raises concerns about operational independence and financial stability.

2. Key Concerns:

• Negative Working Capital and Equity: Current liabilities far exceed current assets, resulting in a net working capital deficit, which is a red flag for liquidity risk. Negative shareholders’ funds suggest insolvency on a balance sheet basis.
• High Related Party Debt: £279,784 of creditors are related parties, with loans unsecured, interest-free, and repayable on demand, indicating reliance on affiliated entities for financing rather than independent cash flow generation. This could affect creditor confidence and operational sustainability.
• New Company with Limited Operating History: Incorporated in April 2023 with only one financial year filed, there is limited evidence of trading performance or profitability. Lack of profit and loss disclosure further limits assessment of operational viability.

3. Positive Indicators:

• Timely Filing Compliance: Both accounts and confirmation statements are filed on time, reflecting good governance in regulatory compliance.
• Substantial Fixed Asset Investments: The company holds investments valued at £247,720, which may represent group undertakings or subsidiaries, potentially providing strategic value or future income streams.
• Diverse Control Structure: Ownership and control are divided among three related entities, which may provide a degree of operational support and oversight.

4. Due Diligence Notes:

• Investigate the nature and recoverability of the fixed asset investments and whether these investments generate revenue or support the company’s operations.
• Review the terms, history, and future plans regarding related party loans to assess refinancing risk and potential for these debts to be called in.
• Obtain and analyze detailed profit and loss accounts or management accounts to understand cash flow generation and operational performance since incorporation.
• Assess the business plan and funding strategy, given the current negative working capital and equity position.
• Confirm the independence and governance practices given the intertwined directorships and significant related party transactions.