Company Number: 14678304

Analysis Date: 2025-07-29 12:26 UTC

1. Risk Rating: MEDIUM

The company is newly incorporated and classified as a micro entity with very limited financial history. The reported loss for the first period and minimal current assets relative to liabilities indicate some early-stage financial strain, though liabilities appear low. The absence of overdue filings and a sole controlling director with full ownership provides some governance clarity but also concentration risk.

2. Key Concerns:

• Operating Loss: The company recorded a loss of £3,591 despite generating £17,527 in turnover, indicating negative operating performance in its first year.
• Minimal Working Capital: Current assets stand at only £63, yielding a net current asset position of £63, which is very low and could constrain short-term liquidity.
• Single Person Control: Ms. Ama Ituwah Otoo holds 75-100% ownership and all voting rights, concentrating decision-making authority and control, which may limit oversight.

3. Positive Indicators:

• Compliance: No overdue accounts or confirmation statement filings, showing adherence to statutory requirements.
• Net Assets Positive: Despite the loss, net assets of £1,313 are maintained, suggesting the balance sheet is not yet under distress.
• Micro Entity Status: Simplified reporting and low fixed assets reduce complexity and potential operational burdens.

4. Due Diligence Notes:

• Review the nature and sustainability of the company's revenue streams given the early loss.
• Assess cash flow forecasts and any external funding or shareholder support available to cover operating deficits.
• Investigate any related party transactions or loans given the single director/owner structure.
• Confirm the legitimacy and completeness of the accounting records and disclosures in the absence of audit.