Company Number: 15206724

Analysis Date: 2025-07-29 20:52 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk as evidenced by net liabilities of £39,636 against very low current assets (£752) and high current liabilities (£40,837) in its first financial period. This negative equity position and working capital deficit indicate an inability to meet short-term obligations without additional financing.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company’s net liabilities position and substantial current liabilities compared to minimal current assets present a material risk to solvency and liquidity.
• Newly Incorporated with Limited Operating History: Incorporated in October 2023 and filing first accounts for a 13-month period only, there is limited historical financial data to assess operational stability or cash flow trends.
• No Profit & Loss Account Provided: The directors elected not to include a profit and loss statement, limiting insight into revenue generation, profitability, and cash flow dynamics critical to assessing sustainability.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, demonstrating adherence to regulatory obligations.
• Small Employee Base: Employing only 3 people may imply a lean cost structure, which could support operational efficiency if revenue improves.
• Clear Ownership and Management: Directors and persons with significant control are disclosed, with no apparent governance or disqualification issues.

4. Due Diligence Notes:

• Investigate Source of Current Liabilities: Clarify nature and terms of the £40,837 current liabilities and whether they are trade creditors, loans, or related party balances.
• Assess Business Model and Revenue Streams: Obtain profit and loss information or management accounts to evaluate the company’s ability to generate cash inflows.
• Review Directors’ Plans and Funding: Understand how the directors intend to address the negative net asset position and fund ongoing operations.
• Confirm No Related Party Transactions: Verify if there are transactions with directors or connected parties that may affect financial stability.