Company Number: 14460924

Analysis Date: 2025-07-29 14:42 UTC

1. Risk Rating: MEDIUM
   Justification: The company is very recently incorporated (Nov 2022) and classified as a micro-entity with limited financial history. While it reports positive net assets and net current assets, there is a notable decline in net assets from £41,480 in Nov 2023 to £15,169 as of March 2024, indicating potential financial strain. The current liabilities have increased substantially in the latest period, which raises concerns about liquidity.

2. Key Concerns:

• Liquidity Deterioration: Current liabilities increased from £17,714 (Nov 2023) to £63,233 (Mar 2024), while current assets increased less proportionately, reducing net current assets sharply from £41,800 to £14,847. This may indicate cash flow pressure or increased short-term obligations.
• Decreasing Net Assets: The decline in net assets by over 60% within four months suggests either operational losses, increased liabilities, or capital withdrawals that need clarification.
• Limited Operational History and Scale: With only one employee on average and micro-entity status, the business scale is very small, which may limit operational resilience and ability to absorb shocks.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• Ownership and Control: Single majority shareholder/director with full control may allow for swift decision-making.
• Positive Net Current Assets: Despite the decline, the company still maintains net current assets, suggesting it is currently solvent on a working capital basis.

4. Due Diligence Notes:

• Investigate the cause of the sharp increase in current liabilities between Nov 2023 and Mar 2024, including creditor types and payment terms.
• Review the profit and loss account and cash flow statements (if available) to understand operational performance and cash generation.
• Confirm whether any related party transactions or director loans are impacting liabilities.
• Assess client base and revenue sustainability given the small employee count and recent incorporation.
• Verify any contingent liabilities or off-balance sheet risks not visible in micro-entity accounts.
• Evaluate the director’s background and capacity to manage the business, given sole control.