Company Number: 15224876

Analysis Date: 2025-07-29 12:20 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant net liabilities (£57,996 negative net assets) and a large imbalance between current liabilities (£65,475) and cash assets (£7,479), indicating immediate solvency and liquidity concerns for this newly incorporated entity.

2. Key Concerns:

• Negative net assets and net current liabilities suggest the company is insolvent on a balance sheet basis.
• Current liabilities exceed cash resources by a large margin, raising liquidity risk and potential inability to meet short-term obligations.
• The company is only 6 months old with minimal equity (£2 share capital), indicating limited operational track record and financial buffer.

3. Positive Indicators:

• Accounts and confirmation statement filings are up to date with no overdue filings or penalties.
• The business has a small number of employees (3 average), which may indicate a lean cost structure.
• The director expresses satisfaction with accounting policies and compliance with Companies Act requirements.

4. Due Diligence Notes:

• Investigate the nature and terms of the £65,475 creditors balance and whether any are related party loans or trade payables.
• Assess the company's business plan, revenue generation prospects, and cash flow forecasts to understand sustainability.
• Clarify the source of the large accumulated losses (£57,998 P&L reserve) within a short trading period.
• Review director backgrounds and any related party transactions given significant control held by Luke Christopher Jeal.
• Confirm whether additional funding or capital injections are planned to address solvency concerns.