Company Number: 14501359

Analysis Date: 2025-07-29 12:33 UTC

1. Risk Rating: HIGH
   The company shows significant net current liabilities (£-62,305) and negative shareholders' funds (£-6,348) within its first year of operation, indicating poor short-term liquidity and negative net worth. This financial profile suggests a high risk of insolvency if current liabilities are called upon and the company cannot generate sufficient cash flow or additional financing.

2. Key Concerns:

• Severe liquidity risk: Current liabilities exceed current assets by a large margin, with only £728 cash available against over £65,000 creditors due within one year.
• Negative net assets and shareholder funds: The company’s balance sheet shows net liabilities, which is a red flag for solvency and financial stability.
• Unproven operational track record: Incorporated in late 2022 with no comparative figures, there is limited historical financial data to assess business viability or revenue generation, coupled with a high level of other creditors (£63,109) that may represent loans, unpaid supplier bills, or other obligations.

3. Positive Indicators:

• Filing compliance: The company is up to date with both accounts and confirmation statement filings, indicating compliance with Companies House requirements and no regulatory filing issues.
• Tangible fixed assets: The company holds £55,960 in net tangible fixed assets (leasehold land/buildings and plant/machinery), which could potentially be leveraged or sold to improve liquidity.
• Going concern statement: Directors have declared the company a going concern and indicated their willingness to provide finance for the foreseeable future, suggesting potential access to additional funding.

4. Due Diligence Notes:

• Investigate the nature and terms of the £63,109 "other creditors" balance to understand whether these are trade payables, loans from directors, or other liabilities and assess their repayment terms and priority.
• Review cash flow forecasts and management plans to address the large working capital deficit and negative equity position.
• Assess the company’s revenue generation, profitability, and customer base given the absence of profit and loss data and the early stage of operations.
• Verify the directors' capacity and willingness to continue funding the company to support the going concern assumption.
• Examine any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.