Company Number: 15232268

Analysis Date: 2025-07-29 12:11 UTC

1. Risk Rating: HIGH
   The company shows significant liquidity concerns with current liabilities vastly exceeding current assets, resulting in a large negative net current asset position. The minimal net asset base (£4,404) relative to the scale of current liabilities indicates potential solvency risk. Additionally, the company is newly incorporated with limited operating history, increasing operational uncertainty.

2. Key Concerns:

• Liquidity Deficit: Current liabilities of £598,408 versus current assets of only £56,692, leading to a negative working capital of £541,716, which is a strong indicator of cash flow pressure.
• Minimal Equity Buffer: Shareholders’ funds of £4,404 provide very limited cushion against liabilities or unexpected expenses.
• New Incorporation with Limited Track Record: Incorporated in October 2023, with only one reported employee and no profit and loss account filed, there is limited evidence of operational stability or revenue generation.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with its accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Clear Director and Control Structure: The presence of identified directors and persons with significant control, including a corporate shareholder with 75-100% control, suggests defined governance and ownership.
• Fixed Assets Holding: The company holds fixed assets valued at £547,120, which may provide some tangible backing to the balance sheet.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities to assess timing, creditor relationships, and any refinancing arrangements.
• Clarify the operational business model and revenue streams to understand how the company plans to improve liquidity and profitability.
• Review any related party transactions or guarantees, especially given the involvement of Qa Directors Limited as a significant controller.
• Confirm the valuation and liquidity of fixed assets to determine their potential to cover liabilities if needed.
• Assess the directors’ plans for capital injection or restructuring given the precarious net asset position.