Company Number: 14174626

Analysis Date: 2025-07-29 12:18 UTC

1. Risk Rating: MEDIUM

Justification: The company is very young, incorporated in mid-2022, and operates as a micro-entity with minimal financial disclosures. While it shows positive net current assets and net assets for the latest year, the absolute values are small. There is also limited operational history and scale, which suggests moderate risk from a solvency and liquidity perspective. However, no overdue filings or liquidation signs are present, mitigating immediate regulatory concerns.

2. Key Concerns:

• Limited financial scale and capital: Net assets of £2,350 and current assets of £6,102 are very small, which may limit the company’s ability to absorb unexpected costs or downturns.
• Reliance on a single director and shareholder: Mr. Howard McDonald holds 75-100% of shares and voting rights and is the sole director and employee, presenting concentration risk in management and control.
• Short operational history: The company was incorporated in June 2022, with only two years of accounts, increasing uncertainty about operational sustainability and future performance.

3. Positive Indicators:

• No overdue filings or regulatory non-compliance: Accounts and confirmation statements are up to date with no penalties indicated.
• Positive net current assets and net assets: As of 30 June 2024, the company has net current assets of £5,552 and net assets of £2,350, indicating it can currently meet short-term obligations.
• Clear ownership and control structure: The sole director and controlling shareholder are identified, reducing governance ambiguity.

4. Due Diligence Notes:

• Review detailed cash flow statements and profit & loss accounts (not provided) to assess operational profitability and liquidity trends.
• Investigate nature and terms of creditors falling due after more than one year (£2,302) and accruals/deferred income (£900) to understand long-term obligations.
• Confirm whether the company has any material contracts, client base, or growth plans supporting sustainability beyond the initial years.
• Assess director’s background and capacity to manage the business effectively given he is also noted as a van driver, implying possible operational constraints.
• Verify if there are any contingent liabilities or off-balance-sheet exposures not reflected in micro-entity accounts.