Company Number: 14629289

Analysis Date: 2025-07-29 14:56 UTC

1. Risk Rating: MEDIUM
   The company is very young, with incorporation in early 2023 and only one financial year reported. While it shows positive net assets and shareholder funds, the net current liabilities indicate a slight working capital deficit, which could impact short-term liquidity. As a micro-entity with minimal employees and limited operational history, there is uncertainty around ongoing operational stability.

2. Key Concerns:

• Negative Net Current Assets (£-219): Current liabilities slightly exceed current assets, suggesting potential liquidity pressure that may affect the company’s ability to meet short-term obligations without additional financing.
• Limited Financial History and Scale: Only one year of accounts and a single employee restrict the ability to assess trends or operational stability. The company is in a development phase which inherently carries execution risk.
• Concentration of Control: The sole director and 100% controlling shareholder is also the only employee, concentrating operational and governance risk on one individual with no apparent independent oversight.

3. Positive Indicators:

• Positive Net Assets and Shareholders’ Funds (£4,742): The company has net assets exceeding liabilities, indicating an initial capital base sufficient to cover liabilities.
• Compliance with Filing Requirements: No overdue filings and accounts prepared under micro-entity standards demonstrate regulatory compliance and good standing with Companies House.
• Clear Industry Focus: The SIC code 74100 (specialised design activities) aligns with the director’s occupation (software engineer), suggesting relevant expertise.

4. Due Diligence Notes:

• Cash Flow and Working Capital Management: Investigate cash flow forecasts and working capital plans to ensure the company can cover its short-term liabilities and fund operations.
• Business Model and Revenue Generation: Clarify the company’s revenue streams, customer pipeline, and scalability strategy given the early stage and limited financial data.
• Governance and Controls: Understand whether there are plans to broaden management or introduce independent oversight to mitigate risks associated with single-person control.