Company Number: 14670840

Analysis Date: 2025-07-29 18:03 UTC

1. Risk Rating: HIGH
   Justification: The company shows negative net assets (£-1,040) and net current liabilities (£-1,340) as of the latest accounts date, indicating potential solvency issues. The significant long-term creditor balance (£101,111) far exceeds current assets, and cash holdings are minimal (£407), raising liquidity concerns. Being a newly incorporated entity with limited operating history and no audit further heightens risk.

2. Key Concerns:

• Negative shareholders' funds and net assets suggest the company is technically insolvent on a balance sheet basis.
• Large long-term creditor amount (£101,111) compared to very low cash and current assets indicates dependency on external financing or loans with unclear repayment terms.
• Lack of audit and limited financial history (incorporated 2023) reduces transparency and increases uncertainty about operational viability and financial reporting reliability.

3. Positive Indicators:

• The company holds tangible fixed assets valued at £101,411, which could provide collateral or value to support liabilities.
• No overdue filings or compliance issues are noted, indicating good regulatory standing and governance discipline so far.
• Directors appear actively involved and hold significant control, potentially aligning management incentives with company stability.

4. Due Diligence Notes:

• Clarify the nature and terms of the £101,111 long-term creditor balance, including repayment schedules, interest obligations, and creditor identity.
• Review cash flow projections and operational plans to assess how the company intends to service liabilities and improve liquidity.
• Investigate the fixed asset valuation and marketability to confirm realizable value in case of distress.
• Obtain updated financial information beyond the first full year to evaluate ongoing performance and any improvements in net asset position.
• Confirm absence of director disqualifications or other governance red flags beyond the available public records.