Company Number: 14623381

Analysis Date: 2025-07-20 11:24 UTC

1. Risk Rating: MEDIUM
   Justification: The company is newly incorporated (2023) with a modest asset base and limited operating history. Current assets exceed current liabilities, indicating short-term solvency. However, the debtor balance and director loan account raise some liquidity and related party transaction concerns that warrant monitoring. No overdue filings or compliance issues are noted.

2. Key Concerns:

• Reliance on Debtors: Debtors (£26,588) constitute the majority of current assets, with only £2,824 in cash, which could pose cash flow timing risks.
• Director Loan Account: The director advanced £18,752 that was outstanding at year-end; related party loans can create governance and repayment risk if not managed properly.
• Limited Operating History: Being a very recently formed company with only one employee and one year’s accounts limits the ability to assess operational sustainability and profitability.

3. Positive Indicators:

• Positive Net Current Assets: £9,810 net current assets indicate the company can cover short-term liabilities.
• Compliance: No overdue accounts or confirmation statement filings, showing good regulatory compliance.
• Ownership and Control Clarity: Single director and 75-100% ownership by the same individual reduces complexity in governance.

4. Due Diligence Notes:

• Investigate the nature and collectability of debtor balances given their materiality relative to cash.
• Review terms and repayment plans for the director’s loan to assess any financial or governance risks.
• Obtain interim financials or management accounts to evaluate recent trading performance and cash flow trends.
• Confirm business plan and client contracts to understand revenue sustainability given the company’s infancy.
• Verify that no director disqualifications or other adverse regulatory matters exist.