Company Number: 14924014

Analysis Date: 2025-07-19 12:22 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by substantial net current liabilities and negative net assets within its first year of operation.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £22,841 as of 30 June 2024, indicating that total liabilities exceed total assets, a clear solvency concern.
• Severe Working Capital Deficit: Current liabilities (£27,326) far exceed current assets (£3,525), resulting in a net current liability position of £23,801, suggesting immediate liquidity stress and potential difficulty meeting short-term obligations.
• Short Operating History: Incorporated in June 2023, the company’s financial position is based on a very limited operating period, providing minimal historical data to assess operational sustainability or financial performance trends.

3. Positive Indicators:

• No Overdue Filings: The company has complied with statutory filing deadlines for both accounts and confirmation statements, indicating good regulatory compliance.
• Clear Ownership and Control: The sole director and 75-100% shareholder, Mr. Adam Daniel Kelwick, is actively involved, which may facilitate decisive management actions and capital support if needed.
• Micro Entity Reporting: The company benefits from micro-entity reporting exemptions, reducing administrative burden and associated costs.

4. Due Diligence Notes:

• Examine Cashflow and Funding Sources: Investigate the company’s cash flow statements and whether the director or shareholders have injected additional funds or plan future capital injections to remedy the negative net asset position.
• Review Business Model and Revenue Streams: Assess the underlying operational model given the SIC code (other letting and operating of own or leased real estate) to understand expected income generation and sustainability.
• Director’s Plans for Financial Recovery: Clarify strategic plans from management to address the working capital deficit and improve financial stability, including any planned financing, asset acquisitions, or cost control measures.
• Confirm No Undisclosed Liabilities: Verify completeness of liabilities and contingent liabilities not reflected in the latest accounts.

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