Company Number: 14415516

Analysis Date: 2025-07-29 16:38 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position as of the latest financial year (2024), indicating insolvency on a balance sheet basis. This is a significant red flag for solvency risk and suggests potential difficulties in meeting obligations.

2. Key Concerns:

• Solvency: The company reported net assets of -£3,179 in 2024, a deterioration from positive net assets of £1,955 in the prior year. This negative equity position reflects that liabilities exceed assets.
• Liquidity: Current liabilities (£9,293) exceed current assets (£6,114) as of 2024, resulting in negative net current assets (-£3,179). This implies potential cash flow constraints to cover short-term debts.
• Operational Scale and Sustainability: With only one employee and micro-entity status, the business appears very small and may lack operational scale, putting pressure on sustainability and growth prospects.

3. Positive Indicators:

• The company is currently active and not in liquidation or administration, suggesting it remains operational.
• Compliance appears satisfactory with no overdue filings for accounts or confirmation statements, indicating good governance in terms of regulatory submissions.
• Ownership and control are consolidated under a single director and shareholder, which may enable swift decision-making.

4. Due Diligence Notes:

• Investigate the nature of current liabilities causing the balance sheet strain—are they trade payables, loans, or other obligations?
• Review cash flow statements if available, to assess actual liquidity and ability to meet short-term liabilities.
• Understand the business model and revenue generation capacity given the micro scale and single employee status.
• Assess plans or actions by management to restore positive equity and improve liquidity.
• Confirm no undisclosed contingent liabilities or related party transactions that could exacerbate financial risk.
• Evaluate the background and financial capacity of the sole director/shareholder to support the company if needed.