Company Number: 15352667

Analysis Date: 2025-07-20 16:09 UTC

1. Risk Rating: HIGH
   The company’s financials show net current liabilities of £29,284 and total net liabilities of the same amount. This indicates insolvency on a balance sheet basis. Negative net assets at this very early stage of trading raise significant solvency concerns.

2. Key Concerns:

• Solvency risk: The net current liabilities and total net liabilities position suggests the company cannot meet its short-term obligations from current assets, indicating possible insolvency.
• Liquidity issues: Current liabilities (£37,366) far exceed current assets (£8,082), indicating poor liquidity and potential cash flow problems.
• Operational viability: The company was incorporated in December 2023 and the first accounts show a negative equity position with no fixed assets, which questions the sustainability of operations without additional financing.

3. Positive Indicators:

• No overdue filings: Both accounts and confirmation statements are up to date, which suggests compliance with regulatory filing requirements.
• Clear control structure: Two directors each holding 25-50% shares and voting rights provides transparent governance with defined leadership.
• Micro-entity reporting: Simplicity of accounts reduces complexity and administrative burden at this early stage.

4. Due Diligence Notes:

• Verify cash flow projections and working capital plans to understand how the company intends to cover current liabilities.
• Investigate sources of finance and any creditor arrangements supporting the negative net asset position.
• Assess trading performance, contracts, and pipeline to confirm operational sustainability.
• Review director background and track record, given the company’s fragile financial start.
• Confirm no contingent liabilities or off-balance sheet obligations that could exacerbate financial stress.