Company Number: 15017864

Analysis Date: 2025-07-20 18:06 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, evidenced by net current liabilities of £29,206 and overall negative shareholders’ funds of £2,314 within its first financial year of trading. The substantial long-term liabilities (£60,461) relative to modest fixed assets (£87,453) and minimal current assets indicate elevated financial risk.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities exceed current assets by over £29k, suggesting potential short-term liquidity issues.
• Negative Shareholders’ Funds: A net liability position implies that the company’s total liabilities exceed its assets, raising solvency doubts.
• High Long-Term Creditors: The presence of £60,461 creditors due after more than one year against limited asset backing increases financial risk and dependence on creditor terms.

3. Positive Indicators:

• Recent Incorporation with Timely Filings: The company, incorporated in July 2023, has submitted accounts and confirmation statements on time, demonstrating regulatory compliance and good governance.
• Clear Ownership and Management Structure: Two directors with equal shareholding and voting rights provide transparent control and decision-making oversight.
• Tangible Fixed Assets: Ownership of tangible assets valued at £87,453 provides some collateral value that may support operational activities or creditor negotiations.

4. Due Diligence Notes:

• Investigate the nature and terms of the £60,461 long-term liabilities (e.g., loan agreements, repayment schedules, interest obligations).
• Assess cash flow projections and working capital management to understand how the company plans to address current liquidity deficits.
• Review business model and revenue generation plans to evaluate operational sustainability given the current negative equity and liabilities.
• Confirm absence of related party transactions or contingent liabilities that might further impact financial stability.
• Verify director backgrounds for any past conduct issues despite no current disqualifications noted.