Company Number: 15126655

Analysis Date: 2025-07-20 11:43 UTC

1. Risk Rating: LOW
   The company shows a strong net current asset position with net assets of £674,300 shortly after incorporation, indicating good solvency and liquidity. Its accounts are timely filed and compliant with statutory requirements.

2. Key Concerns:

• Significant corporation tax liability of £296,961 due within one year could pressure near-term cash flows if not managed carefully.
• Dependence on amounts owed by related parties (£267,478) may pose collection risk if these entities face financial difficulties.
• The company is newly incorporated (Sept 2023), so limited historical financial data restricts assessment of operational stability and profitability trends.

3. Positive Indicators:

• Healthy working capital position with current assets (£1,175,268) more than double current liabilities (£523,529).
• Cash balance of £424,778 provides a reasonable liquidity buffer.
• Directors have relevant professional backgrounds (accountants) suggesting prudent financial oversight.
• No overdue filings or compliance issues noted.
• Shareholders’ funds entirely positive, reflecting retained profits and no accumulated losses.
• Employment of 10 persons indicates operational scale consistent with small company status.

4. Due Diligence Notes:

• Verify the nature and collectability of trade and related party debtors, particularly the £267,478 owed by group undertakings.
• Review the timing and payment plan for the large corporation tax liability to assess liquidity risk.
• Understand the company’s revenue model and profitability drivers beyond the initial period to evaluate sustainability.
• Confirm no contingent liabilities or off-balance sheet exposures exist that may impact solvency.
• Ascertain that related party transactions are conducted at arm’s length and within regulatory frameworks.
• Monitor future filings for consistency and financial performance trends as the company matures.