Company Number: 15218957

Analysis Date: 2025-07-29 13:03 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by negative net current assets and net liabilities shortly after incorporation. The magnitude of negative equity poses a serious concern for meeting obligations.

2. Key Concerns:

• Negative net current assets of £-15,967 and net liabilities of £-12,659 indicate immediate liquidity strain and insufficient working capital to cover short-term debts.
• Recent incorporation in October 2023 with no turnover data or profit and loss figures provided, limiting insight into operational viability and cash flow generation.
• Director changes with one director resignation in May 2025 may signal governance or internal issues requiring further review.

3. Positive Indicators:

• Accounts and confirmation statement filings are up to date, indicating compliance with Companies House requirements and no filing delays or penalties.
• Ownership and control are clearly disclosed with three directors each holding 25-50% shares, suggesting balanced control and transparency.
• The company benefits from micro-entity reporting, reducing administrative burden at this stage.

4. Due Diligence Notes:

• Investigate the nature and cause of the negative working capital and net liabilities, including any accrued expenses or unpaid liabilities not reflected in assets.
• Review cash flow projections and business plan to assess potential for operational turnaround and capital injection.
• Clarify reasons behind director resignation and evaluate governance stability and management commitment.
• Obtain profit and loss statements or turnover figures when available to better understand revenue generation and sustainability.
• Confirm absence of related party loans or contingent liabilities that may further impact financial health.