Company Number: NI691137

Analysis Date: 2025-07-29 17:29 UTC

1. Risk Rating: HIGH
   The company shows limited current assets and cash with minimal net current assets, a negative retained earnings position, and a very recent incorporation date, indicating a high risk profile for solvency and liquidity.

2. Key Concerns:

• Low Liquidity and Cash Reserves: Cash at bank is only £4 as of the last accounts, which is critically low for operational needs and meeting short-term liabilities of £90.
• Negative Retained Earnings: Retained earnings are negative £86, indicating accumulated losses which may impact the company's ability to fund operations or absorb shocks.
• Lack of Operational Scale and Staff: No employees reported and limited financial history due to incorporation in 2022 suggest the business is in an early stage with uncertain operational sustainability.

3. Positive Indicators:

• No Overdue Filings: The company is current with statutory accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Shareholder Support: The entire shareholding and control is held by Recon Group Ltd, potentially providing financial backing or strategic oversight.
• Clear Governance: Directors and company secretary appointments are properly recorded and active.

4. Due Diligence Notes:

• Investigate the nature and collectability of the £100 debtors balance, as it constitutes nearly all current assets.
• Assess the financial support or guarantees from the parent company Recon Group Ltd to understand potential solvency support.
• Review business plan and cash flow forecasts to evaluate pathways to operational stability and profitability.
• Confirm if there are any contingent liabilities or off-balance sheet obligations that could impact financial health.
• Clarify the company’s revenue generation activities given limited employees and turnover information.