Company Number: 14490575

Analysis Date: 2025-07-29 13:42 UTC

1. Risk Rating: MEDIUM
   Justification: The company is very young (incorporated in late 2022) and operates as a micro-entity with minimal turnover (£21,000 in the latest year) and modest net assets (£1,500). The small scale and low profitability (-£980 loss) raise concerns about operational sustainability and limited financial buffer, but compliance with filing deadlines and positive net current assets mitigate immediate solvency risks.

2. Key Concerns:

• Low Profitability and Operating Loss: The company recorded a small loss (£980) despite low turnover, which raises questions about cost management and business viability at the current scale.
• Limited Financial Resources: With net assets and shareholders’ funds of only £1,500, the company has minimal capital to absorb shocks or fund growth, increasing vulnerability to cash flow issues.
• Early Stage and Limited Operating History: Incorporated in November 2022, the company’s short track record provides limited insight into its ability to generate sustainable revenues and manage risks over time.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date, indicating good regulatory compliance and governance discipline.
• Positive Net Current Assets: Despite small scale, the company maintains positive working capital, suggesting it can currently meet short-term obligations.
• No Indication of Director or Governance Issues: The sole director is current with no adverse records or disqualifications noted.

4. Due Diligence Notes:

• Investigate the business model and revenue drivers to assess scalability and potential for profitability improvements.
• Review cash flow details beyond balance sheet figures to confirm liquidity sufficiency for day-to-day operations.
• Understand the director’s background and plans for capital injection or growth strategy to support operational sustainability.
• Monitor future filings for revenue growth, profitability trends, and any changes in asset or liability structure.