Company Number: 14365835

Analysis Date: 2025-07-20 15:00 UTC

1. Risk Rating: HIGH

Justification: The company shows extremely minimal net assets (£100) and negligible working capital, indicating a very fragile financial position. The limited scale of operations and minimal equity base suggest high solvency and liquidity risk.

2. Key Concerns:

• Thin Equity and Working Capital: Net current assets and shareholders’ funds are only £100, leaving almost no buffer to absorb losses or meet unexpected liabilities.
• Micro-entity Scale with Limited Financial Disclosure: As a micro-entity, financial information is minimal, restricting insight into profitability, cash flows, or operational sustainability.
• Single Director and Significant Control Concentration: Mr. Ismail Patel holds 75-100% ownership and voting rights, which can pose governance risks and may impact operational decision robustness.

3. Positive Indicators:

• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are up to date, indicating regulatory compliance.
• Maintained Employee Base: The company employs 2 individuals, showing some operational activity beyond a dormant status.
• Stable Current Asset to Liability Ratio: Although minimal, current assets slightly exceed current liabilities, indicating no immediate liquidity shortfall.

4. Due Diligence Notes:

• Investigate the nature and sufficiency of current assets (e.g., cash vs. receivables or stock) to assess liquidity quality.
• Review cash flow statements or bank statements if available to understand operational cash generation or reliance on external funding.
• Assess business model viability given minimal financial scale and the "other service activities not elsewhere classified" SIC code.
• Evaluate director’s background and capacity to sustain company operations given concentrated control.
• Confirm absence of contingent liabilities or off-balance-sheet obligations that could exacerbate solvency risk.