Company Number: 14569262

Analysis Date: 2025-07-29 14:37 UTC

1. Risk Rating: MEDIUM
   The company is very young (incorporated in 2023) and currently has a negative net working capital position, which raises liquidity concerns. However, it remains active and compliant with filing obligations, and the director holds full control. The financial size and complexity are minimal as it is classified as a micro entity.

2. Key Concerns:

• Negative Net Current Assets: As of 31 May 2024, current liabilities (£45,536) exceed current assets (£38,733), resulting in a net current liability of £6,803, which could indicate liquidity stress in meeting short-term obligations.
• Long-term Creditors: The company reports £10,863 in creditors falling due after more than one year, which suggests outstanding debt obligations that need to be monitored for repayment capacity.
• Limited Financial History and Scale: With only about one full year of trading and limited financial data, there is insufficient evidence to evaluate operational sustainability or profitability trends.

3. Positive Indicators:

• Compliance and Governance: All relevant filings, including accounts and confirmation statements, are up to date with no overdue submissions, indicating good regulatory compliance.
• Director Control and Stability: The sole director, Mr Paul Huskinson, owns 75-100% of shares and voting rights, providing clear control and decision-making authority without apparent governance conflicts.
• Small Team Size: The company employs only 2 people, which may reduce overheads and operational complexity as it establishes its business.

4. Due Diligence Notes:

• Review the nature and terms of the current and long-term liabilities to assess repayment schedules and covenant risks.
• Investigate the company’s business model, revenue generation, and cash flow projections to understand how it plans to improve liquidity and achieve operational sustainability.
• Confirm the exact nature of fixed assets (£28,519) to evaluate their liquidity and potential use as collateral if needed.
• Monitor ongoing compliance and any changes in director status or control that could affect governance.