Company Number: 14723780

Analysis Date: 2025-07-19 12:25 UTC

1. Risk Rating: LOW to MEDIUM
   Given the company’s very recent incorporation (March 2023), modest scale, and positive net current assets, the immediate financial risk appears low. However, the small size, minimal operating history, and limited capitalization suggest some inherent medium risk typical for a start-up enterprise.

2. Key Concerns:

• Limited Operating History: The company has been trading less than 1.5 years, which constrains the ability to assess long-term sustainability and financial performance trends.
• Small Working Capital Buffer: Net current assets stand at £2,831, a narrow margin over current liabilities (£35,437), indicating limited liquidity headroom. Any unexpected shortfalls could stress cash flow.
• High Deferred Income: Deferred income (£21,180) constitutes a large portion of current liabilities, indicating cash received for services/products yet to be delivered. Failure to fulfill obligations could impact reputation and trigger refunds or liabilities.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds: Net assets of £2,831 reflect initial capitalization and positive equity, with no reported accumulated losses.
• Cash Position: Cash at bank of £35,408 exceeds current liabilities excluding deferred income, suggesting adequate immediate liquidity to meet short-term obligations.
• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are filed on time, evidencing good governance and regulatory compliance for a newly formed company.
• Single Director and PSC Alignment: Mr. Abdul Haseeb controls 75-100% shares and serves as the sole director, simplifying decision authority and accountability.

4. Due Diligence Notes:

• Verify nature and terms of deferred income to assess likelihood of recognition and potential risks related to performance obligations.
• Review loan from director (£593) and other creditors (£10,000) for repayment terms and related party transactions.
• Monitor ongoing cash flow trends and confirm business model viability beyond initial start-up phase.
• Confirm absence of any director disqualifications or adverse regulatory actions against Mr. Haseeb.
• Investigate customer concentration risk given the niche SIC code (retail sale of books in specialised stores) and small scale.