Company Number: 14631857

Analysis Date: 2025-07-20 15:40 UTC

1. Risk Rating: HIGH
   The company shows significant negative net liabilities and limited liquidity, indicating a high risk in solvency and financial stability.

2. Key Concerns:

• Negative net liabilities: The balance sheet shows net liabilities of £507, reflecting shareholder funds and reserves below zero, which is a clear solvency red flag.
• High long-term creditors equal to fixed assets: Creditors due after one year (£508,475) match the fixed assets, suggesting leveraged asset financing with limited short-term liquidity.
• Minimal current assets and negative net current assets: Current assets are only £140 against current liabilities of £190, resulting in a small but negative working capital position, which signals potential short-term liquidity issues.

3. Positive Indicators:

• Company status is active with no overdue filings, indicating compliance with statutory requirements.
• Directors are in place with no noted disqualifications or governance issues.
• The company is newly incorporated (February 2023), so financials may still reflect initial investment and setup phase rather than established operational performance.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors equal to fixed assets to understand the financing structure and repayment obligations.
• Obtain detailed management accounts or cash flow forecasts to assess ongoing liquidity and operational cash generation.
• Clarify the company’s business model and revenue prospects given the lack of employees and minimal current assets, to evaluate operational sustainability.
• Confirm whether the negative net liabilities arise from initial start-up funding arrangements or if there are underlying losses or accounting adjustments.
• Review director backgrounds and any related party transactions given the limited financial footprint.