Company Number: 15112092

Analysis Date: 2025-07-20 11:24 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and net current liabilities, indicating solvency concerns for this early stage business. The micro-entity status and very limited financial history restrict assessment but the deficit equity position is a significant red flag.

2. Key Concerns:

• Negative net assets of £1,296 despite being a newly incorporated entity suggest initial losses or shareholder loans not yet converted to equity.
• Working capital deficit (net current liabilities of £1,568) implies potential liquidity constraints to meet short-term obligations.
• Sole director and 100% shareholder concentration risk, combined with no operating history beyond one year, may raise governance and operational sustainability issues.

3. Positive Indicators:

• Up to date statutory filings including accounts and confirmation statement with no overdue filings or penalties.
• Operating in a growth sector (IT consultancy, SIC 62020) with an active website and clear marketing positioning.
• Small scale with only one employee, limiting fixed overheads and potential burn rate.

4. Due Diligence Notes:

• Investigate the nature and source of the negative equity—was this shareholder loan funding or operating losses?
• Review cash flow statements or bank records (if available) to assess liquidity beyond balance sheet snapshots.
• Understand the business model, client pipeline, and revenue generation prospects given the limited trading period.
• Confirm there are no undisclosed liabilities or contingent risks not reflected in the micro-entity accounts.
• Verify director credentials and related party transactions given sole control by one individual.