Company Number: 14849001

Analysis Date: 2025-07-29 19:01 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits negative net current assets and net liabilities shortly after incorporation, indicating potential solvency issues. The minimal current assets (£411) versus current liabilities (£463) suggest tight liquidity. The low turnover (£82,644) and negative net assets (–£52) within its first financial period are concerning for operational stability.

2. Key Concerns:

• Negative net current assets and shareholders’ funds, signaling the company’s liabilities exceed its short-term assets and equity.
• Very limited cash and working capital (£411 current assets), which may impair the company’s ability to meet immediate obligations.
• The business is newly incorporated (less than 2 years) with a single employee and minimal scale, raising questions about operational sustainability and growth prospects.

3. Positive Indicators:

• The company filed accounts and confirmation statements on time, demonstrating compliance with statutory filing requirements.
• A small profit (£3,198) was reported despite the challenging financial position, suggesting some initial operating capability.
• Full ownership and control by a single director/PSC may allow for agile decision-making and streamlined governance.

4. Due Diligence Notes:

• Investigate the nature of the "Other charges" (£65,424) that significantly impact profitability and understand their composition and recurrence.
• Review cash flow statements or bank records (if available) to assess liquidity beyond the balance sheet snapshot.
• Understand the business model, client base, and revenue pipeline to evaluate future sustainability and growth potential.
• Confirm whether there are any contingent liabilities or off-balance sheet exposures not disclosed.
• Verify the director’s experience and background to assess management capability in steering the company through early-stage challenges.