Company Number: 14769361

Analysis Date: 2025-07-29 14:53 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (March 2023) and has a small asset base with negative net current assets, indicating some short-term liquidity pressure. However, it is not overdue on filings, and ownership/control is concentrated, which can facilitate decision-making.

2. Key Concerns:

• Liquidity shortfall: Current liabilities (£10,648) exceed current assets (£9,994) by £654, signaling potential difficulties in meeting short-term obligations without additional funding.
• Reliance on director loans: A significant portion (£9,721) of current liabilities comprises loans from directors, which may not be sustainable or indicative of external financing availability.
• Limited operational history: With less than one full year of trading and only one employee, there is limited financial track record to assess operational sustainability or profitability trends.

3. Positive Indicators:

• No overdue statutory filings: The company has complied with accounts and confirmation statement deadlines, reflecting good regulatory compliance.
• Positive net assets (£2,021): Despite liquidity concerns, the company’s net assets and shareholder funds are positive, indicating some equity cushion.
• Sole director and PSC alignment: The director, who is also the sole person with significant control, simplifies governance and may enable swift strategic decisions.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans to assess whether they are repayable on demand or convertible to equity, and the likelihood of continued support.
• Review cash flow forecasts and business plans to evaluate the company’s ability to improve liquidity and transition to operational profitability.
• Confirm no undisclosed related party transactions or contingent liabilities exist, given the reliance on director funding.
• Assess market potential and competition within SIC 86900 (Other human health activities) to understand growth prospects.
• Evaluate any insurance, licensing, or compliance requirements specific to the health activity sector that may impact operational stability.