Company Number: 14309836

Analysis Date: 2025-07-29 19:12 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with negative net assets and net current liabilities worsening over the last two financial years. The persistent deficit in working capital signals an inability to meet short-term obligations, raising material doubt on financial stability.

2. Key Concerns:

• Negative Net Assets: The company’s net liabilities increased from £1,404 in 2023 to £2,454 in 2024, indicating growing insolvency risk.
• Working Capital Deficiency: Current liabilities exceed current assets by £2,454 in 2024, a deterioration from the prior year, highlighting liquidity pressure.
• Limited Operational Scale: The business remains a micro-entity with only one employee and minimal assets, suggesting limited operational capacity and possibly constrained revenue streams.

3. Positive Indicators:

• Timely Compliance: The company has filed accounts and confirmation statements on time, demonstrating adherence to statutory obligations and regulatory compliance.
• Active Status with No Liquidation: The company remains active and not under liquidation or administration, indicating ongoing operations.
• Recent Change in Control and Management: Appointment of a new director with significant shareholding may suggest potential for restructuring or strategic changes.

4. Due Diligence Notes:

• Review the company’s cash flow statements (not provided) to assess liquidity management and operational cash generation.
• Investigate the nature and terms of current liabilities to determine urgency and risk of creditor actions.
• Clarify revenue generation and business model viability given the minimal assets and employee count.
• Examine related party transactions or shareholder funding, especially given the significant shareholding concentration.
• Assess the background and capability of the current director and controlling persons to stabilize finances.
• Confirm if there are contingent liabilities or off-balance sheet commitments not reflected in the accounts.