Company Number: 14384067

Analysis Date: 2025-07-20 14:30 UTC

1. Risk Rating: MEDIUM
   The company is a newly incorporated private limited company with a small scale of operations and limited financial history. Its latest accounts show marginal net assets and a current liabilities position exceeding current assets, indicating working capital pressure. However, no overdue filings or insolvency issues are evident, reflecting basic regulatory compliance.

2. Key Concerns:

• Negative net current assets (-£4,031) suggest potential liquidity challenges in meeting short-term obligations.
• Net assets have declined sharply from £8,572 in 2023 to £149 in 2024, indicating erosion of equity and financial fragility.
• The company operates with only one director and employee, concentrating operational risk and raising sustainability questions.

3. Positive Indicators:

• The company is fully compliant with filing deadlines for both accounts and confirmation statements, reducing regulatory risk.
• It holds intangible assets (net £7,380) and tangible assets (net £1,564), providing some asset backing.
• Ownership and control are clearly held by a single individual, simplifying governance and decision making.

4. Due Diligence Notes:

• Investigate the nature and collectability of trade debtors (£19,133) given the liquidity strain.
• Review creditor aging and terms to assess pressure on cash flows and risk of supplier disputes.
• Understand the business model and client pipeline for sustainability, given the single-person operation and limited turnover data.
• Confirm whether the company has any external financing or contingent liabilities not disclosed in the accounts.
• Clarify the reason for the significant drop in net assets and whether it reflects operating losses or asset impairments.