Company Number: OC443303

Analysis Date: 2025-07-29 14:57 UTC

1. Risk Rating: MEDIUM
   The company shows modest net assets and a significant amount of long-term creditors relative to current assets. While it is not currently overdue on filings, the financial position indicates some leverage and potential cash flow pressure.

2. Key Concerns:

• Elevated Long-Term Liabilities: The company reports £126,225 due after more than one year against relatively low current assets (£3,808), signaling debt reliance that may affect solvency if not managed prudently.
• Limited Liquidity Cushion: Current assets only marginally exceed current liabilities (£3,808 vs. £1,020), suggesting limited working capital to cover short-term obligations.
• Short Operating History and Small Scale: Incorporated in mid-2022 with micro-entity reporting status and only 2 employees, the company’s operational track record is limited, posing uncertainty about sustainable cash flow and profitability.

3. Positive Indicators:

• Compliance with Filing Obligations: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance to date.
• Positive Net Assets: Despite liabilities, net assets stand at £50,746, showing some equity buffer for creditors and members.
• Clear Control Structure: A single designated member with significant control is identified, simplifying governance and decision making.

4. Due Diligence Notes:

• Review nature and terms of long-term creditors to assess repayment schedules, interest obligations, and covenant risks.
• Examine cash flow statements (if available) to understand the company’s ability to service debt and meet short-term liabilities.
• Investigate business model and revenue streams, given the short history and small size, to assess future prospects and sustainability.
• Confirm whether the fixed assets (£174,183) are tangible and income-generating or potentially illiquid.
• Assess any related-party transactions, especially given the members’ loans matching net assets.