Company Number: 14557671

Analysis Date: 2025-07-20 13:40 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position as of the latest accounts, indicating insolvency on a balance sheet basis. Negative shareholders’ funds of £2,691 at 30 November 2024, worsening from a previous positive position, suggest financial distress. Current liabilities exceed current assets, reflecting liquidity concerns.

2. Key Concerns:

• Solvency risk: The company’s net assets are negative (£-2,691), indicating it owes more than it owns, which is a significant red flag for meeting long-term obligations.
• Liquidity issues: Current liabilities (£10,866) exceed current assets (£7,329), resulting in a negative net current asset position (£-3,537), implying potential cash flow difficulties.
• Operational sustainability: The company is very young (incorporated in late 2022) and has a small asset base and workforce (2 employees), with no audit performed, which may impair operational stability and transparency.

3. Positive Indicators:

• No overdue filings: Both accounts and confirmation statements are filed on time, reflecting regulatory compliance to date.
• Active status with ongoing operations: The company remains active with a director in place, indicating ongoing business activity.
• Increase in current assets (debtors and cash) in last year: Current assets increased significantly in 2024 compared to prior year, reflecting some growth in receivables and cash holdings.

4. Due Diligence Notes:

• Investigate the cause of negative net assets and declining equity—review the profit and loss account in detail (not filed publicly) to understand losses or write-downs.
• Confirm the quality and collectability of debtors (£3,745) that significantly increased in 2024, as these impact liquidity assessments.
• Assess the company’s cash flow forecasts and working capital management to ascertain ability to meet short-term liabilities.
• Review director and shareholder arrangements, particularly the recent resignation of one director and concentration of control by Mr. Abid Hussain, for governance risks.
• Evaluate the absence of an audit and reliance on abridged accounts for completeness and accuracy of financial data.