Company Number: 14726202

Analysis Date: 2025-07-19 12:04 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position and net current liabilities, indicating solvency concerns. It is newly incorporated with limited financial history and exhibits a shareholders' deficit, raising red flags on financial stability.

2. Key Concerns:

• Solvency: Net liabilities of £825 and negative working capital (£1,097) suggest the company’s current assets are insufficient to cover short-term obligations.
• Related Party Debt: Significant portion (£5,798 of £6,598 total creditors) of current liabilities are amounts owed to group undertakings or related parties, which may imply dependence on intra-group financing rather than independent operational cash flow.
• Director Turnover and Control: One of two initial directors resigned within six months; the remaining director holds significant control (25-50% shares, voting rights, and director appointment rights), concentrating governance risk.

3. Positive Indicators:

• Compliance: All filings (accounts and confirmation statements) are up to date with no overdue returns, indicating regulatory compliance to date.
• Operational Activity: The company is active and has tangible assets and some debtor balances, implying initial trading activity in the human health sector (SIC 86900).
• Clear Accounting Policies: Preparation under FRS 102 with transparent notes shows adherence to accounting standards for small companies.

4. Due Diligence Notes:

• Verify the nature and terms of amounts owed to group undertakings and related parties to assess the sustainability and risks of intercompany financing.
• Investigate cash flow forecasts and plans to address the negative working capital and shareholders’ deficit, including potential capital injections or operational improvements.
• Review governance arrangements due to director concentration and recent resignation, including background checks and any related party transactions.
• Evaluate market position and business model sustainability given limited operating history and sector specifics.