Company Number: 13939289

Analysis Date: 2025-07-19 12:15 UTC

1. Risk Rating: MEDIUM
   The company is a recently incorporated micro-entity demonstrating modest net current assets but a small negative net asset position, indicating a fragile equity base. While it is compliant with filing deadlines and not in liquidation, the negative net assets and accruals exceeding net current assets suggest some financial strain.

2. Key Concerns:

• Negative Net Assets: At £(170) as of 30 April 2024, this indicates the company’s liabilities exceed its assets, posing solvency concerns if not rectified.
• Accruals and Deferred Income Exceeding Net Current Assets: Accruals of £1,560 surpass net current assets of £1,390, potentially indicating timing mismatches in cash flows and obligations.
• Limited Operational Scale and History: Being a micro-entity incorporated in 2022 with only one employee and minimal assets, the business may face operational risks and lack financial resilience.

3. Positive Indicators:

• Compliance and Good Governance: No overdue filings for accounts or confirmation statements, indicating management diligence in regulatory compliance.
• Stable Directorship and Ownership: Two directors/shareholders with clear control and no reported disqualifications, providing transparency and continuity.
• Modest Working Capital Surplus: Despite negative net assets, positive net current assets (£1,390) suggest short-term liabilities can currently be met.

4. Due Diligence Notes:

• Investigate the nature and timing of accruals and deferred income to assess cash flow impact and whether these obligations are likely to crystallize into cash outflows soon.
• Review the business plan and revenue projections to understand how the company intends to move from negative net equity to profitability and positive net assets.
• Confirm absence of any director disqualifications or related party transactions that could affect governance or risk profile.
• Consider obtaining most recent management accounts or cash flow statements for a more current financial position due to limited historical data.