Company Number: 14852318

Analysis Date: 2025-07-20 16:08 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity concerns with net current liabilities of £4,099 and negative shareholders’ funds of £4,199 in its first year of operation. The financial position reflects accumulated losses and minimal cash on hand (£24).

2. Key Concerns:

• Negative net current assets and shareholders’ funds indicate the company is unable to cover short-term liabilities from current assets, raising solvency risk.
• Extremely low cash balance suggests liquidity constraints, potentially impairing operational stability and timely payments.
• No employees are recorded, indicating very limited operational capacity which may affect business sustainability and revenue generation.

3. Positive Indicators:

• The company is relatively new (incorporated May 2023) and has filed accounts and confirmation statements on time, evidencing compliance with regulatory requirements.
• The controlling shareholder/director has confirmed ongoing financial support to maintain the company as a going concern for at least one year, which provides a buffer to address current financial weaknesses.
• The business operates in management consultancy (SIC 70229), a sector generally requiring low fixed asset investment and potentially scalable with low overhead.

4. Due Diligence Notes:

• Investigate the nature and collectability of debtors (£8,158) to assess whether these receivables will convert to cash to alleviate liquidity issues.
• Review the basis and extent of the director/shareholder’s financial support commitments and whether this is sustainable over the medium term.
• Assess business plans or forecasts to understand how the company intends to reverse losses and improve working capital.
• Confirm no undisclosed contingent liabilities or off-balance sheet risks exist that could worsen the financial position.