Company Number: 14861416

Analysis Date: 2025-07-20 16:09 UTC

1. Risk Rating: HIGH
   Given the company's negative net current assets and net equity position at the end of its first financial year, there is a significant solvency risk. The company's liabilities exceed its assets, indicating potential difficulties in meeting obligations without additional capital or cash inflows.

2. Key Concerns:

• Negative net current assets of £938 highlight immediate liquidity concerns. The company may struggle to cover short-term liabilities with its current assets.
• Negative shareholders' funds of £938 raise solvency issues at the company’s inception stage. Without capital injection or profitability, financial stability is questionable.
• The company is newly incorporated (May 2023) with only one reporting period and minimal financial history, limiting visibility on operational sustainability and cash flow trends.

3. Positive Indicators:

• The company is fully compliant with filing obligations; accounts and confirmation statement are filed on time, indicating good regulatory compliance.
• Ownership and control are consolidated under a single experienced director and sole shareholder, which may allow for streamlined decision-making and capital support if needed.
• The business operates in specialised design and management consultancy sectors, which can have low initial capital requirements and potential for growth if effectively managed.

4. Due Diligence Notes:

• Investigate the source and nature of the current liabilities to assess whether they are trade creditors, loans, or other obligations, and the payment terms involved.
• Review cash flow projections and any planned capital injections or financing arrangements to address the negative working capital position.
• Obtain more detailed information on contracts, client base, and revenue generation activities to evaluate operational sustainability beyond the opening year.
• Confirm whether any related party transactions or director loans exist that support the company financially.
• Monitor ongoing compliance with Companies House filings and whether the company moves toward profitability or requires restructuring.