Company Number: 14035602

Analysis Date: 2025-07-20 16:10 UTC

1. Risk Rating: HIGH
   The company has persistent negative net assets and net current liabilities over the last three reported years, indicating solvency concerns. The net liabilities position worsened from (£4,419) in 2023 to (£2,417) in 2024, though slightly improved, still reflects financial instability.

2. Key Concerns:

• Solvency Risk: The company’s net liabilities indicate it does not have sufficient assets to cover its liabilities, which poses a risk to meeting its obligations.
• Liquidity Concerns: Current liabilities exceed current assets by over £2,400 in the latest accounts, implying potential cash flow difficulties to meet short-term debts.
• Operational Sustainability: Despite being active since 2022 with 7 employees, the continual negative equity and lack of profit and loss information call into question ongoing viability without additional capital or improved trading performance.

3. Positive Indicators:

• The company is current with all statutory filings, including accounts and confirmation statements, indicating compliance with regulatory requirements.
• The director and sole significant controller appears engaged and has maintained company operations since incorporation.
• The micro-entity status reduces administrative burdens and costs, which may help preserve resources in the short term.

4. Due Diligence Notes:

• Investigate the company’s cash flow generation and sources of funding to understand how it meets obligations despite negative net assets.
• Review any recent or forthcoming trading accounts or management accounts to assess operational performance beyond balance sheet data.
• Confirm whether there are any contingent liabilities or related party transactions that impact financial stability.
• Assess the director’s plans for addressing negative equity and improving liquidity, including potential capital injections or restructuring.
• Verify the accuracy and completeness of the financial statements filed, especially the absence of a profit and loss account filing.