Company Number: 14720530

Analysis Date: 2025-07-20 11:35 UTC

1. Risk Rating: MEDIUM
   The company shows modest positive net current assets and net equity but operates with tight working capital and relatively high short-term liabilities compared to current assets. Its recent incorporation and small scale limit historical financial visibility, increasing uncertainty.

2. Key Concerns:

• Liquidity Pressure: Current liabilities of £7,762 exceed cash (£4,218) and debtors (£4,249) only marginally, leaving a net current asset buffer of £705, which is thin for operational resilience.
• Profitability and Cash Flow Visibility: No profit and loss account filed publicly; retained earnings declined from £1,006 to £605 indicating losses or withdrawals. Cash balance improved but remains low for sustaining growth or absorbing shocks.
• Concentration of Control and Funding: Significant shareholding overlap between an individual director and another company, plus director loans totaling over £3,000, suggest reliance on related party funding, potentially limiting financial independence and raising governance questions.

3. Positive Indicators:

• Timely Compliance: No overdue accounts or confirmation statements; filings appear current and complete.
• Stable Shareholders’ Funds: Despite some reduction, positive net assets and shareholder equity reflect a solvent position at the balance sheet date.
• Small Operating Scale: Limited liabilities and modest asset base consistent with a small business, reducing complexity and exposure to large scale financial risks.

4. Due Diligence Notes:

• Obtain and review the profit and loss statement to understand operational profitability and causes for declining reserves.
• Clarify the nature, terms, and repayment schedule of director loans and related party transactions to assess financial risk and governance standards.
• Investigate cash flow patterns and debtor collection efficiency given the relatively high debtor balance versus cash.
• Confirm no director disqualifications or regulatory issues given the concentrated control structure.
• Review strategic plans for growth and capital injection, considering the company’s recent start date and limited equity.