Company Number: 14355141

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

1. Risk Rating: HIGH

   Justification: The company is dormant with no meaningful trading activity and has significant liabilities in the form of a loan classified as debtors and creditors. The limited operating history, negative cash flow indications, and reliance on a start-up loan present solvency and liquidity concerns.

2. Key Concerns:

   • Dormant Status with Minimal Trading: The company has not generated material revenue (only 5 sales under £300) since incorporation, indicating no operational cash inflows.

   • Liquidity Risk from Loan Usage: The director used the start-up loan, which is now recorded as a debtor of £46,440 and a corresponding creditor of the same amount, suggesting funds have been drawn but not repaid or converted into productive assets. Cash on hand is negligible (£29).

   • Negative Profitability and Operational Viability: The director reports operating at a loss, funding personal expenses from the business loan, which is not sustainable long term without a clear business plan or revenue growth.

3. Positive Indicators:

   • No Overdue Filings or Compliance Issues: Accounts and confirmation statements are filed on time, reflecting good regulatory compliance.

   • Strong Equity Base Relative to Assets: Shareholder funds of £62,613 exceed net liabilities, indicating some capital buffer.

   • Single Experienced Director with Full Control: Clear ownership and governance structure with Mrs. Jennifer Anne Davies-Clark as sole shareholder and director.

4. Due Diligence Notes:

   • Clarify Nature of Debtors and Creditors Balances: Investigate the £46,440 loan recorded simultaneously as debtor and creditor, its terms, interest, and repayment status.

   • Assess Business Model and Revenue Generation Plans: Understand strategic plans for moving from dormancy to trading, including marketing, sales pipeline, and capital requirements.

   • Review Cash Flow Projections and Funding Sources: Evaluate how the company plans to improve liquidity given current cash constraints.

   • Verify Director’s Financial Support and Related Party Transactions: Since the director funded personal expenses from the loan, confirm whether this has been properly accounted for and any implications on company solvency.

   • Confirm No Hidden Liabilities or Contingent Risks: Although accounts show no audit requirement and limited disclosures, ensure no off-balance sheet liabilities exist.