Company Number: 14457150

Analysis Date: 2025-07-29 13:05 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant negative net assets (£-19,940) soon after incorporation, with current liabilities vastly exceeding current assets by approximately £147k. The creditor balance largely comprises a director's loan, indicating reliance on related party funding rather than external creditors. The absence of turnover and employees suggests the business is not yet operational or generating cash flow, raising concerns about solvency and liquidity.

2. Key Concerns:

• Negative Net Assets and Net Current Liabilities: The balance sheet shows net current liabilities of £147,032 and overall net liabilities of £19,940, indicating the company’s liabilities exceed its assets, which is a solvency red flag.
• Reliance on Director’s Loan: The main creditor is a director’s loan account (£146,691), implying the company depends on shareholder funding to meet obligations rather than operational cash flow or external finance.
• Lack of Operational Activity: No turnover or employees reported, which raises questions about the company’s operational viability and sustainability in the near term.

3. Positive Indicators:

• No Overdue Filings: Both the annual accounts and confirmation statement are filed on time, demonstrating regulatory compliance and good governance in terms of statutory duties.
• Investment Property Asset: The company holds an investment property valued at £127,092, which is a tangible asset that could potentially be monetized or leveraged.
• Clear Ownership and Management: Single director and 75-100% shareholder Emma Louise Armitt provides clear control and responsibility, which can facilitate decision-making and accountability.

4. Due Diligence Notes:

• Investigate Director’s Loan Terms: Clarify the terms, repayment schedule, and security (if any) related to the £146,691 director’s loan to assess risk exposure.
• Assess Business Plan and Revenue Prospects: Understand the company’s strategy for generating turnover and operational cash flow given the lack of current income or employees.
• Confirm Valuation and Marketability of Investment Property: Verify the basis of the £127,092 valuation and the liquidity of this asset in the current market environment.
• Review Future Funding Arrangements: Determine if there are plans for additional capital injections or external financing to support ongoing operations and liabilities.