Company Number: 14838352

Analysis Date: 2025-07-29 20:06 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits a negative net asset position (£-8,141) driven by significant long-term creditors (£12,361) against very limited current assets (£774) and fixed assets (£4,220). This indicates solvency issues and potential difficulty in meeting obligations over time.

2. Key Concerns:

• Solvency Risk: The balance sheet shows net liabilities (£-8,141), implying the company owes more than it owns, which raises concerns about its ability to meet debts, especially long-term.
• Liquidity Concerns: Current assets (£774) are substantially lower than current liabilities (not explicitly stated as positive but notes mention -£774 for creditors falling due within one year, suggesting minimal working capital), indicating potential cash flow constraints.
• Operational Scale and Sustainability: Being a micro-entity with only one employee and relatively small asset base, the company may lack operational scale and financial resilience to absorb shocks or expand.

3. Positive Indicators:

• Compliance Status: The company is active, has filed its accounts and confirmation statement on time, with no overdue filings, indicating good compliance and governance practices to date.
• Clear Ownership and Control: The sole director and 75-100% shareholder are the same person (Mrs Donnamari Swoffer), suggesting streamlined decision-making without complex shareholder disputes.
• No Indication of Insolvency Proceedings: The company is not in liquidation, administration, or receivership, which provides a current operational status.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£12,361) to assess repayment schedules and potential refinancing risks.
• Review cash flow forecasts and bank statements to evaluate short-term liquidity and ability to cover operating expenses.
• Understand the business model and revenue generation capacity given the micro-entity status and limited employee count.
• Confirm if there are any contingent liabilities or off-balance-sheet obligations not reflected in the accounts.
• Verify the reason for the negative net assets—is it due to initial start-up costs, loan funding, or other factors?