Company Number: 14157958

Analysis Date: 2025-07-29 18:59 UTC

1. Risk Rating: MEDIUM
   The company shows a decline in net current assets and shareholders’ funds over the latest year, with a significant drop in cash balances and current liabilities remaining substantial. While still solvent, these trends suggest caution due to potential liquidity constraints.

2. Key Concerns:

• Declining Liquidity: Cash decreased markedly from £73,166 in 2023 to £21,994 in 2024, a reduction of approximately 70%, which may indicate cash flow pressures.
• Increased Risk of Working Capital Strain: Current liabilities remain material at £11,390, and with reduced cash and no debtors reported in the latest year, the company’s ability to cover short-term obligations could be compromised.
• Limited Financial History and Scale: Established in 2022 and categorized as a small company with minimal share capital (£100), the limited operating history restricts assessment of operational stability and resilience.

3. Positive Indicators:

• Positive Net Current Assets and Shareholders’ Funds: Despite reductions, net current assets remain positive at £10,604 and shareholders’ funds at £14,550, indicating the company is still in a net asset positive position.
• No Overdue Filings: The company is compliant with statutory filing deadlines for accounts and confirmation statements, reflecting sound regulatory compliance.
• Active Status and Clear Management: The company is active with a single director who also holds significant control, which simplifies governance and accountability.

4. Due Diligence Notes:

• Investigate causes behind the sharp decline in cash reserves and absence of trade debtors in the latest year to understand operational cash flow dynamics.
• Review the nature and timing of current liabilities to assess payment obligations and whether any creditor pressure exists.
• Obtain more detailed management accounts or cash flow forecasts to evaluate sustainability and potential funding needs.
• Verify the background and experience of key personnel to gauge managerial capability in navigating early-stage business risks.
• Assess the company's customer base and contracts to determine revenue stability and growth prospects.