Company Number: 15054621

Analysis Date: 2025-07-20 16:00 UTC

1. Risk Rating: HIGH
   The company shows significant negative net current assets and shareholders' funds shortly after incorporation, indicating potential solvency and liquidity challenges. The total liabilities substantially exceed current assets, and the company is reliant on director and associate funding.

2. Key Concerns:

• Negative Working Capital: Net current liabilities of £15,840 suggest the company does not have sufficient short-term assets to cover immediate obligations, posing liquidity risk.
• Negative Equity: Shareholders' funds stand at negative £12,870, reflecting accumulated losses or funding shortfalls that may impair financial stability.
• Reliance on Related Party Creditors: Creditors include £10,616 owed to associates and £6,480 to directors, indicating dependency on insider financing rather than external debt or operational cash flow.

3. Positive Indicators:

• Active Status and Recent Incorporation: The company is active with no overdue filings, showing compliance with statutory requirements.
• Single Director and PSC Alignment: The managing director owns 75-100% shares and voting rights, simplifying governance and decision-making.
• Small Asset Base: Tangible fixed assets of £3,070 and cash of £5,039 provide some operational resources despite overall negative net assets.

4. Due Diligence Notes:

• Investigate the nature and terms of amounts owed to associates and directors to assess risk of related-party funding withdrawal or capital calls.
• Review cash flow forecasts and business plans to understand how the company intends to address the negative working capital and build positive equity.
• Confirm absence of contingent liabilities or off-balance sheet commitments not reflected in current accounts.
• Monitor future filings, especially the next annual accounts and confirmation statement, for signs of operational progress or further financial deterioration.