Company Number: 13840659

Analysis Date: 2025-07-19 12:26 UTC

1. Risk Rating: HIGH
   The company shows significant solvency concerns with net liabilities of £211,561 at the end of 2023, indicating it owes more than it owns. The current liabilities far exceed current assets, demonstrating liquidity strain. The business appears to be in an early and challenging stage of development with no retained earnings and a negative working capital position.

2. Key Concerns:

• Negative Net Assets and Working Capital: Net liabilities of £211,561 and net current liabilities of £247,959 reflect financial distress and inability to meet short-term obligations from current assets.
• High Current Liabilities Relative to Assets: Current liabilities (£498,296) are nearly double current assets (£250,337), posing immediate liquidity risk.
• Limited Operational History and Financial Performance: Incorporated in 2022, the company has minimal equity initially (only £1 in 2022) and no profit reserves, indicating it has yet to reach financial stability or profitability.

3. Positive Indicators:

• Filing Compliance: No overdue filings or accounts, suggesting adequate regulatory compliance.
• Active Website and Market Positioning: The company operates in the information technology consultancy and wireless telecommunications sectors with an active website, indicating ongoing commercial activity and market presence.
• Experienced Management: Director appointments are current and transparent, which may support governance stability.

4. Due Diligence Notes:

• Examine the nature and maturity of current liabilities to understand if short-term debts are manageable or if refinancing risks exist.
• Review cash flow statements and income data (not currently filed) to assess operating cash generation and burn rate.
• Investigate related party transactions and the role of controlling entities (Ebaracus Limited, Hnhx Limited, Hanhaa Genx Limited) to understand group support or financial interdependencies.
• Clarify the business plan and capital raising intentions given the negative equity and net liabilities.
• Confirm the impact of director change in May 2025 and any strategic shifts associated with management transition.