Company Number: 14686591

Analysis Date: 2025-07-29 14:54 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency risk with net liabilities of £7,721 and negative net current assets of £8,345, indicating an inability to meet short-term obligations from current assets. Being newly incorporated and with only micro-entity accounts available, financial resilience is minimal.

2. Key Concerns:

• Negative Net Assets & Working Capital Deficit: The company’s liabilities exceed assets, signaling potential insolvency risk.
• Limited Operating History: Incorporated less than two years ago with minimal financial data, making sustainability assessment difficult.
• Director Loan Exposure: An unsecured, interest-free director loan of £1,643 may indicate reliance on director funding to maintain operations, increasing liquidity risk.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, reflecting regulatory compliance and governance discipline.
• Clear Ownership and Control: One PSC with 75-100% ownership and voting rights simplifies accountability and decision-making.
• Micro-Entity Status: Reduced reporting burden may allow focus on operational build-up and cost control in early stages.

4. Due Diligence Notes:

• Investigate underlying causes of negative net assets and whether there is a viable plan to restore profitability and balance sheet strength.
• Assess cash flow statements and management forecasts (if available) to gauge liquidity position beyond balance sheet snapshot.
• Review director loan terms and intentions regarding repayment or conversion to equity to understand financial support mechanisms.
• Confirm whether the company has secured any external financing or has contracts/orders to support future revenue growth.
• Examine the business model in the "Other building completion and finishing" sector to evaluate competitive position and market risks.