Company Number: 15660167

Analysis Date: 2025-07-29 13:53 UTC

1. Risk Rating: HIGH

The company’s financial snapshot indicates significant solvency and liquidity risks. Negative net current assets and net liabilities suggest the company’s obligations exceed its liquid assets, raising concerns about its capability to meet short-term liabilities.

2. Key Concerns:

• Negative Net Current Assets and Net Liabilities: The company reports net current assets of -£3,439 and net assets of -£3,439 as at 30 April 2025, indicating it owes more than it owns.
• Very Limited Cash Reserves (£4,078) Against Current Liabilities (£7,517): The cash on hand is insufficient to cover short-term debts, highlighting liquidity constraints.
• Single Employee and Newly Incorporated Status: With only one employee and incorporation less than a year prior to the reporting date, operational stability and business sustainability are unproven.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with statutory filing requirements.
• Director Confidence in Going Concern: The director’s report states a belief in good sales growth and profitability, suggesting management optimism.
• Clear Ownership Structure: One person controls 75-100% of shares and voting rights, which can facilitate swift decision-making.

4. Due Diligence Notes:

• Investigate Nature of Current Liabilities: Clarify composition and maturity profile of creditors to assess risk of default or need for refinancing.
• Review Cash Flow Projections and Operational Performance: Verify management’s assertion of sales growth and profitability via recent management accounts or forecasts.
• Assess Director and Shareholder Backgrounds: Given the recent director change and sole shareholder, review their experience and financial capacity to support the business.
• Confirm Absence of Contingent Liabilities or Pending Legal Issues: These could further impair financial stability.