Company Number: 14528306

Analysis Date: 2025-07-29 12:57 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as of the latest financial year ended 31 December 2024, with net current liabilities of £36,753 and negative shareholders’ funds of £336. This indicates the company’s inability to cover short-term liabilities with current assets, raising substantial risk to creditors and investors.

2. Key Concerns:

• Negative Working Capital and Shareholders’ Funds: The large increase in current liabilities from £6,224 in 2023 to £39,072 in 2024, combined with a sharp reduction in current assets, signals financial distress and potential cash flow problems.
• Recent Acquisition of Tangible Fixed Assets: The company purchased tangible fixed assets valued at £40,750 in 2024, which may have strained liquidity given the low cash reserves (£1,702) and growing liabilities. The impact of this investment on cash flow and profitability is unclear.
• Lack of Profit and Loss Disclosure: The director has elected not to include the profit and loss account in the published accounts. This omission limits the ability to assess operational performance, profitability, and cash generation capacity, increasing uncertainty around business sustainability.

3. Positive Indicators:

• No Overdue Filings: The company has complied with statutory filing deadlines for both accounts and confirmation statements, suggesting good regulatory compliance and governance practices.
• Single Director and PSC: The company is controlled by a single director and person with significant control, Mr. Richard Gavin Price, which may facilitate swift decision-making and clear accountability.
• Established Accounting Policies: The company prepares its financial statements under UK GAAP (FRS 102) and maintains accounting policies consistent with small company requirements.

4. Due Diligence Notes:

• Review Profit and Loss Accounts: Obtain full profit and loss statements and management accounts to evaluate revenue, expenses, and profitability trends, which are currently unavailable.
• Assess Cash Flow Projections: Investigate cash flow forecasts, particularly how the company plans to manage its current liabilities and the financing or expected return on the recent tangible asset acquisition.
• Confirm Nature of Current Liabilities: Clarify the composition and maturity profile of the £39,072 current liabilities to assess the immediacy of repayment obligations and potential creditor risks.
• Evaluate Business Model and Client Base: Understand the sustainability of the consulting activities (SIC 70229), client contracts, and pipeline to gauge future revenue stability.
• Director and Governance Review: While no disqualifications or compliance issues are noted, confirming director reputation and any related party transactions is advisable due to concentration of control.