Company Number: 14587088

Analysis Date: 2025-07-29 14:53 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-3,737) at its first year-end, indicating insolvency on a balance sheet basis. This financial position suggests an inability to meet liabilities with available assets, raising significant solvency concerns.

2. Key Concerns:

• Negative net assets: The balance sheet at 31 January 2024 shows total net liabilities of £3,737, a clear solvency red flag.
• Early stage with limited operating history: Incorporated in January 2023 and filing first accounts in 2024, financial stability is unproven.
• Micro-entity status and minimal disclosures: Limited financial information reduces transparency on cash flows and operational viability.

3. Positive Indicators:

• No overdue filings: Both accounts and confirmation statements are up to date, reflecting regulatory compliance to date.
• Single director and controlling shareholder: Clear governance structure with no conflicting control issues.
• Business activity in management consultancy: Generally low capital intensity and scalable, which might support future growth if funded properly.

4. Due Diligence Notes:

• Investigate the cause of negative net assets — whether due to start-up costs, unpaid liabilities, or other reasons.
• Review cash flow statements and working capital management to assess liquidity beyond balance sheet figures.
• Confirm any contingent liabilities or off-balance-sheet obligations that may exacerbate financial risk.
• Assess director’s plans for capital infusion or restructuring to restore solvency.
• Evaluate client contracts and revenue pipeline to determine operational sustainability.