Company Number: 15112662

Analysis Date: 2025-07-20 11:35 UTC

1. Risk Rating: HIGH
   Justification: The company has negative net current assets (£-440) and negative shareholders' funds (£-540) within its first financial year. The current liabilities exceed current assets, indicating potential solvency and liquidity concerns. The very low cash balance (£45) further exacerbates the liquidity risk.

2. Key Concerns:

• Negative net assets and shareholders’ funds suggest the company is currently insolvent on a balance sheet basis.
• Current liabilities exceeding current assets indicate a working capital deficit, raising questions about the company’s ability to meet short-term obligations.
• Minimal cash on hand (£45) compared to creditors due (£7,236) implies potential cash flow constraints to sustain operations.

3. Positive Indicators:

• The company is compliant with filing deadlines; accounts and confirmation statement are up to date, indicating no immediate regulatory compliance issues.
• The sole director and significant controller, Xxxxxx Xxxxxxxxname shown to subscribers, appears to have a stable and transparent control structure with 75-100% ownership and voting rights.
• The business is newly incorporated (September 2023), and the financials cover the first accounting period, which may imply early-stage operational challenges rather than established distress.

4. Due Diligence Notes:

• Investigate the nature and timing of the £6,751 debtors balance to assess collectability and impact on liquidity.
• Clarify the composition and payment terms of current liabilities (£7,236), including the £3,392 corporation tax liability, to evaluate immediate cash requirements.
• Obtain management projections and cash flow forecasts to understand how the company plans to address the negative net assets and working capital deficit.
• Review any related party transactions or director loans that may affect financial stability.
• Assess operational contracts or order book to gauge sustainability and potential for revenue growth.