Company Number: 14501824

Analysis Date: 2025-07-29 12:41 UTC

1. Risk Rating: HIGH
   The company shows a significant net liability position with current liabilities far exceeding current assets, resulting in negative shareholders’ funds. This indicates solvency risk and potential difficulties meeting short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: £326 in current assets vs. £10,977 in current liabilities, leading to net current liabilities of £10,651, raising liquidity concerns.
• Negative Shareholders’ Funds: The company is in a net liability position (-£10,651), signaling financial distress or undercapitalization.
• Limited Operating History and Scale: Incorporated late 2022 with only one employee and minimal asset base, limiting operational stability and resilience.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue accounts or confirmation statements, indicating regulatory compliance and good governance to date.
• Clear Ownership and Control: Single director and 75-100% shareholder control provides clear decision-making structure.
• Micro Entity Filing: Utilization of micro-entity accounting suggests a lean operation with low overhead costs.

4. Due Diligence Notes:

• Investigate the nature of the current liabilities: Are these trade payables, loans or accrued expenses? Understand their payment terms and any potential restructuring plans.
• Assess cash flow projections and funding sources to evaluate the company’s ability to meet obligations going forward.
• Request management commentary or strategic plans (not included in accounts) explaining how the negative net assets will be addressed.
• Confirm if there are any contingent liabilities or related party transactions not disclosed in the micro-entity accounts.
• Verify director’s background and experience given sole control and financial position.