Company Number: 14817336

Analysis Date: 2025-07-20 12:23 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (April 2023) and has limited financial history. While it reports positive net current assets and shareholders’ funds, its working capital margin is narrow (£888), and current liabilities are close to current assets. These factors introduce moderate uncertainty regarding short-term liquidity and operational stability.

2. Key Concerns:

• Limited Operational History: Being less than 1.5 years old, the company has not yet demonstrated sustained trading performance, increasing business continuity risk.
• Tight Working Capital: Current liabilities (£11,794) nearly equal current assets (£12,682), leaving a small buffer that could stress liquidity if unexpected expenses arise or debtor collections slow.
• Concentration of Control: Two directors each hold 25-50% share and voting rights, which may affect governance dynamics if disagreements arise or if succession planning is weak.

3. Positive Indicators:

• Compliance and Filings Up to Date: The company is current with both accounts and confirmation statement filings, with no overdue reports or penalties noted.
• Positive Net Assets and Equity: Shareholders’ funds stand at £1,163, indicating the company’s assets exceed liabilities at the balance sheet date.
• Going Concern Affirmed: Directors have explicitly assessed and stated confidence in the company’s ability to continue as a going concern for at least 12 months, reflecting management’s proactive risk assessment.

4. Due Diligence Notes:

• Verify the nature and collectability of the £7,978 debtors to assess liquidity risk more concretely.
• Investigate the composition of current liabilities, especially the "other creditors" (£10,328), to understand payment terms and any potential concentration risk.
• Review trading projections and cash flow forecasts underlying the going concern assessment for robustness under various economic scenarios.
• Assess directors’ background and any related-party transactions, given the close control by two individuals.