Company Number: 14518364

Analysis Date: 2025-07-20 12:33 UTC

1. Risk Rating: MEDIUM
   The company is very small and relatively new, with minimal net assets (£1,362) and limited current assets. Negative net current assets position in 2024 and absence of cash or receivables raise moderate concerns about short-term liquidity. However, there is no indication of insolvency or overdue filings.

2. Key Concerns:

• Liquidity risk: Current assets have dropped to zero as of March 2024, while current liabilities stand at £10,834, indicating potential cash flow constraints.
• Limited financial history: Incorporated in December 2022, the company has only one full financial year of data, restricting ability to assess operational stability over time.
• Concentration of control: One director and 75-100% shareholder controls all decision-making, which may pose governance risks if not mitigated by formal controls.

3. Positive Indicators:

• Compliance: No overdue accounts or confirmation statements; filings are up to date as of late 2024.
• Asset base: The company has invested in fixed assets (£12,196), suggesting some operational capacity beyond purely cash-based activities.
• Stable staffing: Maintains a consistent headcount of one employee over the reported periods, aligning with micro-entity classification and indicating controlled operational scale.

4. Due Diligence Notes:

• Verify nature and liquidity of fixed assets to understand their realizable value in stress scenarios.
• Review cash flow statements or bank statements to assess working capital trends and timing of liabilities.
• Confirm if any off-balance sheet liabilities or contingent risks exist that may impact solvency.
• Evaluate governance arrangements given sole director control to identify potential risks around decision-making and oversight.
• Obtain management plans for growth, capital injections, or creditor negotiations to improve liquidity.