Company Number: 14402976

Analysis Date: 2025-07-20 13:13 UTC

1. Risk Rating: MEDIUM
   The company exhibits a very modest net asset base (£205) and a negative net working capital position (current liabilities exceed current assets by £2,143). While it remains solvent on a technical basis (positive net assets), the tight liquidity position may hamper the ability to meet short-term obligations comfortably.

2. Key Concerns:

• Liquidity Shortfall: Current liabilities (£21,482) slightly exceed current assets (£19,339), resulting in a negative net current asset position (-£2,143), which could indicate cash flow constraints.
• Minimal Capital Base: Shareholders’ funds and net assets are very low (£205), suggesting limited financial buffer to absorb losses or fund growth.
• Limited Operating History: Incorporated in October 2022 with only one year of micro-entity accounts filed, limiting visibility on operational stability and financial trends.

3. Positive Indicators:

• Compliance and Timely Filings: No overdue accounts or confirmation statements; filings are up to date, indicating good regulatory compliance.
• Clear Ownership and Control: Single controlling shareholder/director with full voting rights and appointment/removal powers, which may facilitate decisive management actions.
• Micro-entity Status: Reduced reporting burden aids administrative efficiency and cost control, fitting for a small consultancy business.

4. Due Diligence Notes:

• Investigate the company’s cash flow and payment terms to suppliers and creditors to assess if liquidity pressures are transient or structural.
• Review contracts, client base, and revenue streams to understand operational sustainability and growth prospects beyond the initial incorporation year.
• Confirm the director’s capacity and plans for funding or capital injections if needed, given the minimal equity base.