Company Number: 14383727

Analysis Date: 2025-07-20 14:38 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with negative net assets and net current liabilities shortly after incorporation, indicating potential financial distress.

2. Key Concerns:

• Solvency Risk: Shareholders’ funds stand at -£10,548, with current liabilities (£14,582) vastly exceeding current assets (£1,851), pointing to an inability to meet short-term obligations without additional financing.
• Operational Stability: The company reported no employees during the first financial year and minimal fixed assets, suggesting limited operational activity or investment to generate revenue.
• Financial Transparency and Audit: The company filed unaudited accounts under micro-entity provisions; while legally permissible, this limits insight into financial robustness and raises questions about completeness of financial information.

3. Positive Indicators:

• The company is compliant with all filing deadlines, including accounts and confirmation statements, reducing regulatory compliance risk.
• Directors and persons with significant control are clearly identified without any flagged disqualifications or regulatory issues.
• The company is recently incorporated (September 2022), so financial distress may be attributable to early-stage investment and startup costs rather than established operational failure.

4. Due Diligence Notes:

• Investigate the nature and timing of the current liabilities to understand if these are trade payables, loans, or other obligations and whether they are secured or contingent.
• Review cash flow projections and business plans to assess the company’s ability to raise additional capital or generate operating income to cover liabilities.
• Assess any related party transactions or director loans that may have funded initial activities and whether further capital injections are planned.
• Clarify the company’s business model and revenue streams given the SIC code (Real estate agencies) but lack of employees and operational assets.
• Confirm no outstanding legal or regulatory proceedings that could exacerbate financial risks.