Company Number: 15798030

Analysis Date: 2025-07-19 12:23 UTC

1. Risk Rating: LOW
   The company appears financially stable for its stage, with positive net current assets and net assets, no overdue filings, and adequate cash reserves relative to short-term liabilities. Being newly incorporated and in the early operational phase, no immediate solvency or liquidity concerns are evident.

2. Key Concerns:

• Limited Operating History: Incorporated in June 2024, the company’s financial data covers less than one year, limiting assessment of ongoing operational stability and financial trends.
• Concentration of Control: One individual holds 75-100% of shares and voting rights, which may pose governance and succession risks.
• Modest Share Capital: With only £100 in called-up share capital, the company has limited equity buffer to absorb unexpected losses or financial stress.

3. Positive Indicators:

• Healthy Working Capital: Current assets of £45,213 exceed current liabilities of £23,831, yielding net current assets of £21,382, demonstrating good short-term liquidity.
• Positive Net Assets and Retained Earnings: Net assets stand at £22,179 with retained earnings of £22,079, indicating initial profitability or capital contributions.
• Up-to-Date Compliance: Accounts and confirmation statement filings are current with no overdue returns, reflecting sound governance practices.
• Modest Debt Levels: Creditors mainly relate to taxation and social security, suggesting manageable short-term liabilities without evident external borrowing.

4. Due Diligence Notes:

• Review Business Plan and Revenue Model: Confirm the sustainability of management consultancy activities and client pipeline given the nascent stage.
• Assess Director Experience and Background: Verify the qualifications and track record of both directors, especially given the concentration of control.
• Investigate Related Party Transactions: With both directors sharing an address and high ownership concentration, ensure transactions are at arm’s length.
• Monitor Cash Flow Management: Examine cash flow forecasts to ensure ongoing liquidity beyond the initial period.
• Clarify Capital Structure Plans: Understand any future capital raising or equity injection plans to support growth or absorb potential losses.