Company Number: 14673168

Analysis Date: 2025-07-29 20:08 UTC

1. Risk Rating: LOW

The company is newly incorporated (February 2023) and has filed timely accounts and confirmation statements, indicating compliance with regulatory requirements. The financial statements reveal positive net assets (£10,718) with net current assets of £7,718, and no overdue filings. Despite limited operational history, the company’s solvency and liquidity positions appear sound based on the available data.

2. Key Concerns:

• Minimal cash balance (£40) relative to current liabilities (£15,352), suggesting potential liquidity management challenges despite positive net current assets due to significant debtors (£23,030) owed mostly by related parties.
• Limited scale of operations with only one employee on average and modest fixed assets (£3,000), which raises questions about operational sustainability and ability to scale.
• Dependence on parent and group undertakings for receivables and payables may indicate intra-group financing reliance rather than independent cash flow generation.

3. Positive Indicators:

• Shareholders’ funds are positive (£10,718) with a small but positive retained earnings reserve, indicating initial profitability or capital injection.
• No overdue statutory filings; accounts and confirmation statements are up to date, reflecting good governance and regulatory compliance.
• Clear ownership and control structure with a parent company holding 75-100% shares and voting rights, suggesting strategic backing and potential financial support.

4. Due Diligence Notes:

• Investigate the nature and collectability of debtors, especially amounts owed by group and parent undertakings, to assess actual liquidity and credit risk.
• Review cash flow projections and operational plans to understand how the company intends to sustain and grow its business given low cash on hand.
• Clarify intercompany arrangements and any guarantees or loans from the parent group to ensure transparency around financial dependencies.
• Confirm ongoing compliance with tax and social security obligations given the significant creditor balance in this category.