Company Number: 14679856

Analysis Date: 2025-07-29 12:32 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (net liabilities of £772) due to accruals and deferred income exceeding total assets. Current assets are minimal (£28 prepayments), and there is no reported cash or receivables, indicating liquidity constraints. The company is very young (incorporated less than two years ago) and operates as a micro-entity with a single employee (the director). These factors combined raise concerns about solvency and operational sustainability.

2. Key Concerns:

• Negative Net Assets: Despite a small balance sheet total, the presence of accruals/deferred income of £2,800 leads to net liabilities of £772, pointing to potential solvency risk.
• Minimal Current Assets and No Cash Reported: The micro-entity balance sheet shows zero current assets aside from prepayments, which suggests limited liquidity to cover short-term obligations.
• Early Stage with Limited Financial History: Incorporated in 2023 with only one reported financial year, the lack of operational track record limits confidence in ongoing viability.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statement filings are up to date, indicating compliance with statutory requirements.
• Director Ownership and Control: The sole director, Mr. Matthew Taylor, owns 75-100% of shares and voting rights, which may facilitate swift decision-making.
• Micro-entity Status: The company benefits from simplified reporting requirements, reducing administrative burden in its early phase.

4. Due Diligence Notes:

• Investigate the nature of the £2,800 accruals/deferred income causing net liabilities, confirming if these are genuine liabilities or accounting timing differences.
• Review cash flow forecasts and current banking arrangements to assess liquidity and ability to meet short-term obligations.
• Assess the business plan and contracts in place to understand revenue prospects given the early stage and minimal assets.
• Confirm the director’s background and capacity to sustain the business financially and operationally.