Company Number: 14062432

Analysis Date: 2025-07-19 11:53 UTC

1. Risk Rating: MEDIUM
   The company shows net assets positive but very low (£7,780), indicating limited equity buffer. The large long-term liabilities relative to fixed assets raise concerns about solvency, although current assets exceed current liabilities suggesting short-term liquidity is adequate. The micro-entity status and small scale of operations limit comprehensive financial disclosure.

2. Key Concerns:

• High long-term creditors (£337,058) closely matching fixed assets (£310,578) suggest potential over-leverage and risk if asset values decline or liabilities crystallize.
• Very low equity base (£7,780) increases vulnerability to financial shocks and restricts ability to absorb losses or raise additional capital.
• Limited financial history (incorporated 2022) and small scale (2 employees) imply early-stage operational and financial stability is unproven.

3. Positive Indicators:

• Current assets (£36,097) comfortably exceed current liabilities (£1,837), indicating good short-term liquidity and potential to meet immediate obligations.
• No overdue filings and compliance with accounts and confirmation statement deadlines demonstrate management attention to regulatory requirements.
• Directors hold significant control and are local, possibly implying hands-on management and oversight.

4. Due Diligence Notes:

• Investigate nature and terms of long-term creditors—are these loans, related party debts, or other obligations? Assess repayment schedules and covenants.
• Review underlying asset valuations and whether fixed assets are tangible and realizable at stated amounts.
• Examine cash flow statements (not provided) to confirm operational cash generation and ability to service debt.
• Confirm absence of director disqualifications or related-party conflicts beyond stated control information.
• Understand business model and revenue generation plans given the “Activities of head offices” SIC classification and minimal employee base.