Company Number: 14719709

Analysis Date: 2025-07-29 18:18 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits negative net current assets, indicating liquidity strain, as current liabilities exceed current assets by £13,648. This shortfall jeopardizes the company’s ability to meet short-term obligations. Being a newly incorporated micro-entity with minimal operating history further elevates risk.

2. Key Concerns:

• Negative net working capital (current assets £26,412 vs current liabilities £40,060), raising immediate liquidity concerns.
• Lack of operational scale: only one employee and very limited financial history since incorporation in March 2023.
• Sole control by one director/shareholder, which may limit governance oversight and increases dependency risk.

3. Positive Indicators:

• The company is compliant with all filing deadlines, including accounts and confirmation statements, showing good regulatory adherence.
• Shareholders’ funds stand positive at £22,709, reflecting initial capital injection or retained equity despite early losses or working capital deficits.
• No indication of director disqualifications or governance issues.

4. Due Diligence Notes:

• Review cash flow forecasts and working capital management plans to assess how the company intends to address the net current liability position.
• Investigate the nature and timing of the current liabilities to determine if there are short-term debts due imminently or provisions that could be renegotiated.
• Assess business model viability and pipeline of contracts/orders in event catering, given limited operating history.
• Consider director’s financial backing and willingness to provide additional funding if required.
• Confirm absence of any contingent liabilities or related party transactions not disclosed.