Company Number: 15432843

Analysis Date: 2025-07-20 16:17 UTC

1. Risk Rating: HIGH

This company demonstrates significant financial distress as evidenced by negative net assets and substantial current liabilities exceeding current assets by a wide margin. The micro-entity classification and short trading history add to uncertainty regarding operational stability.

2. Key Concerns:

• Negative Net Assets (£-37,478): Indicates insolvency on a balance sheet basis, raising serious concerns about the company’s ability to meet its obligations.
• Severe Working Capital Deficit (Net Current Assets £-128,975): Current liabilities far exceed current assets, suggesting liquidity problems and potential cash flow constraints.
• Director Turnover and Governance: Two directors resigned within the first year, leaving a single director in charge. This may indicate internal governance issues or instability at the leadership level.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue filings for accounts or confirmation statements, indicating regulatory compliance thus far.
• Established Incorporation and Clear Ownership: The company is active, with three identified persons with significant control holding balanced ownership and voting rights.
• Micro-entity Status: Reduced filing requirements and smaller operational scale may reduce complexity and reporting burdens at this stage.

4. Due Diligence Notes:

• Investigate the nature and composition of the £129,095 current liabilities to determine if these are short-term debts, loans from related parties, or trade payables.
• Clarify the company’s business model and projected cash flows to assess how it intends to resolve its negative net asset position.
• Explore reasons behind director resignations and assess governance controls under the sole remaining director.
• Confirm if there is any related party financing or contingent liabilities not disclosed in the micro-entity accounts.
• Review any subsequent events post 31 January 2025 that might affect financial position or operational viability.