Company Number: 14848512

Analysis Date: 2025-07-29 19:26 UTC

1. Risk Rating: HIGH

   Justification: The company's financials show a significant liquidity mismatch with current liabilities far exceeding current assets, indicating potential cash flow difficulties. Given it is a newly incorporated entity with minimal operating history, this heightens uncertainty around its ability to meet short-term obligations.

2. Key Concerns:

   • Negative Net Current Assets: Current liabilities (£56,936) surpass current assets (£2,374) by a large margin, resulting in a net current liabilities position of £54,562, which signals potential liquidity stress.
   • Limited Operational History: Incorporated in May 2023 with only one financial reporting period, there is limited evidence of sustainable revenue generation or operational stability.
   • Micro-entity Status and Minimal Disclosures: As a micro-entity, the company is exempt from audit and provides limited financial detail, restricting thorough financial analysis and increasing information asymmetry risk.

3. Positive Indicators:

   • Positive Net Assets and Shareholders' Funds: Despite liquidity issues, the company reports net assets of £9,980, indicating a positive equity base at the reporting date.
   • No Overdue Filings: The company is current with both accounts and confirmation statement filings, reflecting compliance with regulatory requirements.
   • Single Director Control with Clear Ownership: The sole director and 75-100% shareholder, Ms. Rebecca Horan, provides clear governance accountability and control transparency.

4. Due Diligence Notes:

   • Investigate the nature and timing of current liabilities to assess payment obligations and potential refinancing or settlement plans.
   • Review the company's business plan, cash flow forecasts, and any external funding arrangements to understand operational sustainability and plans to address liquidity gaps.
   • Confirm the absence of related-party transactions or director loans that may impact financial stability.
   • Assess any further disclosures or management commentary not included in micro-entity accounts that provide insight into operational performance since incorporation.