Company Number: 14889694

Analysis Date: 2025-07-29 14:46 UTC

1. Risk Rating: LOW to MEDIUM
   Given the company's very recent incorporation (May 2023) and micro-entity status with modest net assets (£232), the financial scale is minimal but stable. The net current assets are positive, indicating the company can cover short-term liabilities, which supports a low to medium risk rating at this early stage.

2. Key Concerns:

• Limited Financial History: Only one year of unaudited micro-entity accounts is available, limiting insight into operational sustainability and long-term financial trends.
• Very Low Net Assets and Working Capital: Net assets of £232 and net current assets of £952 are minimal, leaving little cushion against unexpected liabilities or cash flow disruption.
• Small Scale & Concentrated Ownership: The company has only two directors and two employees, with a dominant shareholder controlling 75-100% of shares and voting rights, which may increase governance and succession risks.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: The company holds slightly more current assets (£11,040) than current liabilities (£10,088), indicating near-term solvency.
• No Overdue Filings or Compliance Issues: Both accounts and confirmation statement filings are up to date with no overdue notices, reflecting good governance and regulatory compliance.
• Clear Control Structure: The ownership and control details are transparent, with no signs of director disqualifications or regulatory sanctions.

4. Due Diligence Notes:

• Review Cash Flow and Profitability Projections: Given the small net asset base, evaluate the company’s business plan and cash flow forecasts to assess if it can sustain operations and grow.
• Clarify Nature and Timing of Revenues: Information on contracts or client base would help assess operational stability in the IT consultancy sector.
• Monitor Director and Shareholder Relations: With concentrated ownership, ensure governance structures are robust to mitigate risks from potential disputes or changes in control.
• Confirm Accuracy of Accounts and Accounting Policies: Although micro-entity exemptions apply, verify that the financial statements reflect the true financial position.