Company Number: 14628485

Analysis Date: 2025-07-20 11:43 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (less than two years old) and shows a modest net asset position of £33,036. However, it has negative net current assets (£-21,729), indicating current liabilities exceed current assets, which poses liquidity risk. The absence of turnover or profit figures limits assessment of operational cash flows.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£88,758) exceed current assets (£67,029) by £21,729, signaling potential short-term cash flow challenges to meet obligations.
• Intangible Asset Valuation: A significant goodwill balance (£50,000) was recognized at inception with no impairment review disclosed; this may overstate asset values if not supported by business performance.
• Lack of Profit and Turnover Disclosure: Profit and Loss account was not filed, restricting insight into revenue generation and profitability, important for evaluating operational viability.

3. Positive Indicators:

• Compliance and Filing Status: The company is up to date with accounts and confirmation statement filings, indicating good governance and regulatory compliance to date.
• Shareholders’ Funds Positive: Despite liquidity concerns, shareholders’ funds total £32,936, providing some buffer against insolvency risk.
• Directors’ Stability: Two directors with substantial shareholding and voting rights are established, which may support stable management oversight.

4. Due Diligence Notes:

• Obtain detailed Profit & Loss statements and turnover figures to assess operational performance and cash flow generation.
• Review the basis and justification for the goodwill valuation and check for any impairment testing performed.
• Investigate the nature of current liabilities, especially "Other creditors" (£82,150) to determine if these are trade payables, loans, or accruals and their payment terms.
• Confirm directors’ backgrounds and any potential related party transactions, given common residential addresses and shareholdings.