Company Number: 15053710

Analysis Date: 2025-07-20 14:27 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net assets (-£371) and significant long-term liabilities (£15,500) that exceed total assets, indicating solvency issues. Despite positive net current assets, the overall balance sheet signals financial distress shortly after incorporation.

2. Key Concerns:

• Negative net assets and shareholders’ funds suggest the company is technically insolvent on a balance sheet basis.
• Long-term creditors (£15,500) exceed total asset value, raising questions about debt servicing capacity and creditor exposure.
• The company is very newly incorporated (less than 1 year), limiting historical financial performance data and increasing business sustainability uncertainty.

3. Positive Indicators:

• Positive net current assets (£3,771) imply that short-term liquidity may be manageable, potentially allowing the company to meet immediate obligations.
• The director is also the sole significant controller, indicating clear decision-making authority which can enhance operational agility.
• No overdue filings or compliance issues are noted, suggesting good governance and regulatory adherence to date.

4. Due Diligence Notes:

• Investigate the nature and terms of the £15,500 long-term liabilities to assess repayment schedules, interest charges, and creditor identity.
• Review cash flow projections and working capital management plans to understand how the company intends to improve solvency and liquidity.
• Examine business model viability, market positioning, and revenue generation strategies given the company’s very recent start and small scale (3 employees).
• Confirm no hidden contingent liabilities or off-balance sheet obligations exist that may exacerbate financial risks.