Company Number: 14723792

Analysis Date: 2025-07-29 14:23 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks with net current liabilities of £64,676 against modest current assets of £3,324 and a negative shareholder equity position of £19,461. The very limited share capital (£1) and high short-term creditor balances (£68,000) further exacerbate financial vulnerability for this newly incorporated entity.

2. Key Concerns:

• Severe working capital deficit: Current liabilities far exceed current assets, indicating potential cash flow difficulties and inability to meet short-term obligations without additional funding.
• Negative net assets and shareholder funds: Net liabilities highlight cumulative losses or capital erosion, raising questions on the sustainability of the business without fresh equity injection or profitable trading.
• Concentration of control and limited governance: Single director and 100% ownership by one individual may pose governance and operational risks, especially given the early-stage nature and financial stress signs.

3. Positive Indicators:

• No overdue filings: Company is compliant with statutory filing deadlines for accounts and confirmation statements, indicating good regulatory conduct to date.
• Intangible assets recorded: Capitalised software development costs (£45,215) suggest investment in core product development, which could underpin future revenue streams.
• Going concern disclosed with caveats: Management acknowledges material uncertainties but maintains a reasonable expectation to continue, demonstrating awareness and monitoring of financial position.

4. Due Diligence Notes:

• Investigate the nature and repayment terms of the £68,000 creditors due within one year, including any related party loans or supplier credit terms.
• Assess the business plan and cash flow forecasts underpinning the going concern assumption, including timelines for achieving positive operating cash flows.
• Review director’s capacity and plans for additional funding or equity to support solvency, alongside any contingent liabilities or off-balance sheet commitments.
• Clarify the impact of the intangible assets on future revenue and whether amortisation or impairment risks exist.