Company Number: 14152879

Analysis Date: 2025-07-29 15:16 UTC

1. Risk Rating: MEDIUM
   The company shows marginally negative net current assets in the latest financial year, indicating a slight liquidity shortfall. However, it remains a micro-entity with minimal financial complexity and no overdue filings, which somewhat mitigates immediate solvency concerns.

2. Key Concerns:

• Liquidity Tightness: The net current assets moved from a positive £1 in 2023 to a negative £45 in 2024, suggesting the company’s current liabilities slightly exceed its current assets. This could indicate potential cash flow constraints.
• Minimal Capital Base: Shareholders’ funds are essentially negligible, reflecting very limited equity capital and no retained earnings, which reduces financial resilience.
• Limited Operational Scale: With only one employee and micro-entity status, the business likely has limited operational capacity and may be vulnerable to market or operational disruptions.

3. Positive Indicators:

• Up-to-Date Compliance: All statutory filings including accounts and confirmation statements are current and not overdue, reflecting good governance and compliance discipline.
• Stable Employment: The company maintains a consistent workforce size, indicating operational continuity.
• No Indications of Insolvency: Despite the small negative net current assets, there are no signs of insolvency proceedings or director disqualifications.

4. Due Diligence Notes:

• Cash Flow Analysis: Obtain detailed cash flow statements or management accounts to assess how the company manages working capital and whether negative net current assets are transient or persistent.
• Nature of Current Liabilities: Review the composition and maturity profile of current liabilities to understand any imminent repayment risks.
• Business Model Viability: Investigate the company’s revenue streams, customer base, and pipeline given its micro size and limited financial resources.
• Director Background: Verify the background of the director(s) for any adverse history, as only one director is reported.
• Future Capital Requirements: Assess plans for capital injection or financing to strengthen equity and liquidity positions.