Company Number: 13123664

Analysis Date: 2025-07-20 14:39 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and net liabilities, indicating solvency concerns. Its minimal cash balance and negative working capital raise liquidity risks. The low turnover relative to liabilities and the loss incurred suggest operational instability at this stage.

2. Key Concerns:

• Negative net current assets of £1,412 with cash at only £286 indicate potential difficulty in meeting short-term obligations.
• Operating loss of £1,412 in the first financial period with minimal turnover (£22,549) raises concerns about sustainable profitability.
• Small scale and early stage of operations, with no audit and limited financial history, increase uncertainty regarding future financial resilience.

3. Positive Indicators:

• The company is compliant with filing requirements, with no overdue accounts or confirmation statements, indicating good regulatory compliance to date.
• Directors are actively involved with clear control and accountability.
• The company operates as a community interest company (CIC), suggesting a social mission with potentially stable stakeholder support.
• The company has kept administrative expenses reasonably low relative to turnover.

4. Due Diligence Notes:

• Review subsequent financial periods beyond January 2022 to assess whether financial performance and liquidity have improved.
• Investigate the nature and terms of creditors totaling £1,698 to assess any payment pressures or related party transactions.
• Confirm any external funding or grants supporting the company given its CIC status and early losses.
• Assess directors’ plans for achieving operational sustainability and improving cash flow.
• Verify no director disqualifications or adverse compliance issues beyond what is reported.