Company Number: 14222514

Analysis Date: 2025-07-29 20:19 UTC

1. Risk Rating: MEDIUM
   The company shows a modest asset base and positive net assets, but a significant net current liability position signals liquidity risk. The micro-entity scale and recent incorporation limit historical financial data for trend analysis.

2. Key Concerns:

• Negative Working Capital: Current liabilities (£48,697) substantially exceed current assets (£871), resulting in a net current liability of £43,480, which may indicate cash flow constraints in meeting short-term obligations.
• Limited Operating History: Incorporated in mid-2022 with only one year of financial data available, making it difficult to assess long-term operational stability and financial performance.
• Concentration of Control: Single director and 100% ownership by Mr. Clifford George Freeman, which may pose governance and succession risks.

3. Positive Indicators:

• Positive Net Assets and Shareholders' Funds: Despite liquidity challenges, the company reports net assets of £58,386, indicating some capital buffer.
• No Overdue Filings: Accounts and confirmation statements are up to date, reflecting good compliance with statutory requirements.
• Micro-Entity Reporting: Simplified reporting under FRS 105 suggests low complexity in operations, which may reduce risk of hidden liabilities.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to ascertain whether they are short-term borrowings, trade payables, or other obligations and assess the company’s cash flow forecasts.
• Review the fixed assets composition (£103,366) to understand their liquidity and role in operations or collateral value.
• Assess the business model in the "Other accommodation" sector (SIC 55900) for revenue generation potential and market positioning.
• Confirm absence of any director disqualifications or adverse legal actions against the sole director.
• Verify future financing plans or capital injections to address the working capital deficit.