Company Number: 14457391

Analysis Date: 2025-07-29 13:21 UTC

1. Risk Rating: HIGH
   The company exhibits signs of financial stress, particularly negative net current assets and very limited net assets, which implies potential solvency and liquidity risks.

2. Key Concerns:

• Negative Net Current Assets: As at 31 March 2024, the company shows net current liabilities of £4,749, indicating current liabilities exceed current assets, a liquidity red flag.
• Low Net Assets and Equity Base: Net assets stand at only £4,700, a marginal increase from £10 the previous year, suggesting minimal financial buffer to absorb shocks or losses.
• Limited Operational History and Scale: Incorporated in late 2022, with only one employee, and micro-entity status, the company has a very limited track record and scale, increasing operational risk and uncertainty about sustainability.

3. Positive Indicators:

• Compliance with Filing Deadlines: The company is current on both accounts and confirmation statement filings, indicating good regulatory compliance to date.
• Sole Director and PSC Alignment: The director and person with significant control are the same individual, which can facilitate decision-making and streamlined governance at this micro scale.
• No Indication of Insolvency Procedures: The company is active and not in liquidation, administration, or receivership.

4. Due Diligence Notes:

• Review cash flow statements and detailed creditor aging to assess immediate liquidity pressures and payment practices.
• Investigate the nature of current liabilities to determine if these are trade payables, loans, or other obligations and their terms.
• Assess business plan and pipeline for revenue growth to evaluate prospects for improving financial health beyond the micro entity scale.
• Confirm background and reputation of the sole director given concentration of control and responsibility.
• Clarify reasons for negative working capital and whether this is typical for the sector or specific to this entity’s operational model.