Company Number: 14738879

Analysis Date: 2025-07-29 13:04 UTC

1. Risk Rating: HIGH

Justification: The financial data indicates net liabilities and negative shareholders' funds at the balance sheet date. The company has current liabilities exceeding its net current assets, and overall net assets are negative. Given the company was incorporated less than two years ago, this raises concerns about solvency and financial stability.

2. Key Concerns:

• Negative Net Assets: The company shows net liabilities of £1,543, indicating the total liabilities exceed total assets, which is a red flag for solvency risk.
• Current Liabilities vs. Working Capital: Current liabilities stand at £45,000, while net current assets are negative £20,286, suggesting potential liquidity issues in meeting short-term obligations.
• Limited Operational History: Incorporated in March 2023 with only one employee and micro-entity reporting, there is limited financial track record to assess operational sustainability or cash flow generation.

3. Positive Indicators:

• No Overdue Filings: The company is current with both accounts and confirmation statement filings, suggesting compliance with statutory requirements.
• Director Control and Oversight: The company is controlled by a single director and 75-100% shareholder, which may facilitate swift decision-making.
• Fixed Assets Base: The company holds fixed assets valued at £63,743, which could represent a tangible asset base to support operations or collateral.

4. Due Diligence Notes:

• Investigate Nature and Terms of £45,000 Long-term Creditors: The accounts show creditors due after more than one year equal to £45,000. Confirm if these are loans, leases, or other obligations and their repayment terms.
• Cash Flow Analysis: Obtain detailed cash flow statements or bank statements to assess liquidity and ability to meet current liabilities.
• Business Model and Revenue Streams: Review business plan and contracts to evaluate operational sustainability given the recent incorporation and limited employee count.
• Director Background Check: While no disqualifications are indicated, further review of director's experience and financial standing is prudent.
• Asset Valuation: Confirm the nature and valuation method of fixed assets to evaluate their realizable value in insolvency scenarios.