Company Number: 14110878

Analysis Date: 2025-07-29 18:50 UTC

1. Risk Rating: HIGH
   The company demonstrates a precarious financial position characterized by significant long-term liabilities exceeding current assets, an overdue accounts filing, and no employees, which collectively elevate solvency and liquidity risks.

2. Key Concerns:

• Long-term Creditors Exceeding Current Assets: The balance sheet shows creditors due after more than one year amounting to £574,900, which is substantially higher than current assets of £534,693. This indicates a heavy debt burden that may strain cash flows and solvency.
• Negative Net Working Capital Presentation: Although net current assets are reported as £534,186, this figure includes a large prepayment and accrued income (£32,436) and creditors due within one year (-£32,943), which should be analyzed carefully to ensure liquidity sufficiency. The proximity of current liabilities to current assets suggests potential liquidity stress.
• Delayed Filing of Annual Accounts: The latest accounts were due by February 28, 2025, but remain overdue. This raises concerns about governance, regulatory compliance, and transparency, potentially delaying critical financial assessments.

3. Positive Indicators:

• Positive Net Assets: Despite the high level of long-term creditors, the company reports positive net assets of £55,692, indicating some equity cushion.
• No Employees: The absence of employees may imply low operational overhead, which could reduce cash burn and operational risks in the short term.
• Active Status and Recent Incorporation: Incorporated in May 2022 and currently active, the company is relatively new, which may suggest ongoing business development and growth potential, though this requires confirmation.

4. Due Diligence Notes:

• Investigate Nature and Terms of Long-term Creditors: It is essential to understand the composition, repayment terms, and any covenants attached to the £574,900 creditors falling due after more than one year to assess the real solvency risk.
• Clarify Cash Flow Position and Working Capital Quality: Review detailed cash flow statements and reconcile prepayments and accrued income to evaluate actual liquidity available for meeting short-term obligations.
• Confirm Reason for Overdue Accounts Filing and Assess Governance: Obtain management explanations for overdue filings and verify whether ongoing compliance issues exist that could impact investor confidence.
• Review Business Model and Revenue Generation: Given zero employees and recent incorporation, assess how the company generates revenue, its client base, and sustainability of operations in the non-specialised wholesale trade sector (SIC 46900).