Company Number: 14498888

Analysis Date: 2025-07-20 16:57 UTC

1. Risk Rating: HIGH
   The company’s financial position as at 30 November 2023 shows significant net liabilities (£9,639) and net current liabilities of £10,140. This indicates an inability to cover current obligations with available short-term assets, raising immediate solvency concerns.

2. Key Concerns:

• Negative Net and Current Assets: The balance sheet reveals net liabilities and working capital deficits, suggesting potential difficulty in meeting short-term debts as they fall due.
• Minimal Capitalization and Resources: Share capital is only £100, with total fixed assets of £901 and current assets of £400, which is insufficient to cover liabilities of £10,540.
• Single Director and Shareholder: The company is controlled entirely by one individual (Mr Joseph Michael Mcdonald), which may pose governance and operational concentration risks.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• Micro-Entity Status: This reduces regulatory burden and may be appropriate for a small startup in early stages.
• Clear Industry Focus: The SIC codes reflect a niche in specialised design and sports goods manufacturing, which can be advantageous if market demand grows.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities (£10,540) to assess if these are payable imminently or subject to restructuring.
• Review cash flow forecasts and funding plans to understand how the company intends to address the working capital deficit and negative equity.
• Examine the business plan and market traction given the company’s recent incorporation (Nov 2022) and limited operational scale (one employee).
• Confirm no director disqualifications or legal proceedings against the controlling shareholder/director.
• Assess whether related party transactions exist that may affect financial stability.