Company Number: 15081333

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

1. Risk Rating: MEDIUM

Justification: The company is newly incorporated (August 2023) and has filed its first set of accounts on time, showing a positive net asset position and positive working capital. However, as a start-up with less than one year of trading, there is limited financial history to fully assess operational and financial stability. The presence of a sizeable corporation tax creditor relative to cash reserves and reliance on directors’ funding indicate some early liquidity management considerations. Overall, risk is moderate given the early stage and limited track record.

2. Key Concerns:

• Liquidity Concerns: Cash of £76,810 versus current liabilities of £82,320, including a significant corporation tax liability of £51,181, suggests tight short-term liquidity requiring careful cash flow management.
• Limited Operational History: Being less than one year old with no audited accounts limits the ability to assess sustainability and profitability trends.
• Concentration of Control: Two directors each hold 25-50% shares and voting rights, which may concentrate decision-making and increase governance risks if not managed transparently.

3. Positive Indicators:

• Positive Net Current Assets and Net Assets: Net current assets of £47,173 and net assets of the same amount indicate the company is solvent at the balance sheet date.
• Timely Compliance: Accounts and confirmation statement filings are up to date with no overdue filings, suggesting compliance with statutory requirements.
• Clear Accounting Policies and Disclosure: The company has adopted appropriate small companies accounting standards and provided adequate disclosures in the notes.

4. Due Diligence Notes:

• Review cash flow forecasts and working capital management plans to assess ongoing liquidity sufficiency.
• Investigate the nature and timing of the corporation tax liability to understand if it is manageable or a sign of tax planning risk.
• Inquire about business model, client base, and contract pipeline to evaluate operational sustainability and growth prospects.
• Assess governance arrangements given the equal shareholding structure and any related party transactions, including director loans.