Company Number: 15024000

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

1. Risk Rating: HIGH
   The company shows a net current liability position and negative net assets, which are significant red flags for solvency and liquidity. The business is newly incorporated with limited financial history, increasing uncertainty about operational stability.

2. Key Concerns:

• Negative net current assets of £93 indicate the company’s current liabilities slightly exceed its current assets, suggesting potential liquidity issues.
• Minimal net assets (£93) and shareholders’ funds at the balance sheet date imply very thin capitalization, raising solvency risk.
• The company is classified as a micro-entity but reports an average of 7 employees, which could suggest operational costs that may not be sufficiently supported by the reported asset base.

3. Positive Indicators:

• The company is active and has filed its accounts and confirmation statement on time, indicating compliance with regulatory requirements so far.
• Ownership and control are consolidated in a single director and shareholder, which can facilitate swift decision-making and governance.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess whether they are short-term payables or potentially problematic debts.
• Review cash flow statements or management accounts (if available) to determine actual liquidity and operational cash generation.
• Clarify the business model and revenue streams given the micro-entity status but relatively high employee count, to assess sustainability.
• Confirm there are no undisclosed contingent liabilities or related party transactions that could exacerbate financial risk.