Company Number: 14836148

Analysis Date: 2025-07-29 15:04 UTC

1. Risk Rating: LOW
   The company exhibits a solid liquidity position with net current assets of £35,047 against current liabilities of £29,138. It has positive net assets (£36,164) and no overdue filings, indicating good regulatory compliance. The business is newly incorporated (2023) and operating in management consultancy, a service sector typically requiring low capital expenditure.

2. Key Concerns:

• Limited Operating History: Incorporated in May 2023, the company has less than two years of trading history, which limits the ability to assess long-term operational stability and profitability.
• Small Scale: With only 2 employees and minimal tangible assets (£1,117 net), the company’s scale is modest, potentially vulnerable to market fluctuations or client dependency risks.
• Concentrated Control: One individual (Mr. Karl Douglas) holds 75-100% shareholding and voting rights, which, while common in small enterprises, may pose governance risks related to decision-making concentration.

3. Positive Indicators:

• Strong Liquidity: Cash reserves of £42,173 exceed current liabilities, indicating the company can meet short-term obligations comfortably.
• Compliance: No overdue accounts or confirmation statements; filings are up to date.
• Positive Net Assets: Shareholders’ funds of £36,164 and retained earnings suggest the company is solvent and has accumulated some profit since inception.
• Clear Accounting and Governance: Accounts prepared under small companies regime compliant with FRS 102 Section 1A; directors acknowledge responsibility for compliance.

4. Due Diligence Notes:

• Review revenue streams and client diversification to verify sustainability beyond initial trading period.
• Assess cash flow projections and client contracts to confirm ongoing liquidity adequacy.
• Examine director's background and related party transactions given the concentration of control.
• Investigate any contingent liabilities or off-balance-sheet obligations not disclosed in current accounts.
• Confirm the accuracy and completeness of debtors, especially given limited operating history.