Company Number: 15126392

Analysis Date: 2025-07-20 11:51 UTC

1. Risk Rating: HIGH

Justification: The company shows a net current liabilities position of £39,648 and net liabilities of £250 as at the first accounting reference date, indicating negative working capital and a shareholders’ deficit despite being newly incorporated. Current liabilities are largely due to amounts owed to related parties (£60,810), which may expose the company to liquidity pressure. The absence of profit and loss information and zero employees suggest the business is at an early or dormant stage with limited operational activity.

2. Key Concerns:

• Negative net current assets and net liabilities so soon after incorporation, indicating potential solvency and liquidity challenges.
• Significant current liabilities owed to related parties, which may reflect reliance on director funding or intercompany loans rather than external financing.
• No recorded employees or trading profit and loss data, raising questions about operational sustainability and revenue generation.

3. Positive Indicators:

• The company owns tangible fixed assets (freehold land and buildings valued at £39,398), which can provide some asset backing.
• Up-to-date statutory filings with Companies House, including accounts and confirmation statement, demonstrating compliance with regulatory filing obligations.
• Clear ownership and control structure with two directors/shareholders, providing transparency.

4. Due Diligence Notes:

• Investigate the nature and terms of the related-party debt (£60,810) to understand repayment schedules, interest, and potential risk of default.
• Review management plans for generating operating cash flows and improving working capital given the negative net current assets.
• Clarify the business model and trading activities to assess sustainability and growth prospects beyond the initial setup phase.
• Confirm whether any additional funding or capital injections are planned to address the current deficit position.
• Monitor ongoing compliance and timely filings in future periods.