Company Number: 15076899

Analysis Date: 2025-07-20 14:50 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (-£32,249) within its first financial year, combined with net current liabilities and substantial long-term creditors exceeding fixed assets. These indicators point to solvency concerns and potential financial distress.

2. Key Concerns:

• Negative Equity: Shareholders' funds are negative, indicating the company’s liabilities exceed its assets, raising questions about its ability to continue as a going concern without additional capital.
• Net Current Liabilities: Current liabilities (£57,974) exceed current assets (£46,121), suggesting liquidity constraints that may impair short-term obligations.
• Significant Long-Term Debt: Creditors due after more than one year stand at £321,300, which is notably large relative to fixed assets and the company’s scale, posing repayment risks if cash flows do not materialize as expected.

3. Positive Indicators:

• Recent Incorporation: Being a newly formed entity (incorporated August 2023) means early-stage financials may not yet fully reflect operational performance or capital injections.
• No Overdue Filings: The company has complied with statutory filing deadlines for accounts and confirmation statements, indicating sound governance in compliance matters to date.
• Control by Established Entity: The entire ownership is held by Saba One Trading Ltd, which may provide access to group resources or support if needed.

4. Due Diligence Notes:

• Investigate the nature and terms of the £321,300 long-term creditors to assess repayment schedules, interest obligations, and any covenants that might affect financial stability.
• Review cash flow forecasts and funding plans to understand how the company intends to manage negative working capital and restore positive equity.
• Clarify the business model and revenue generation timeline given the real estate SIC codes to evaluate operational sustainability and asset utilization.
• Confirm whether related-party transactions exist, especially given the parent company’s control, and assess their impact on financial position.
• Assess directors’ plans for capital injection or restructuring to address the negative net assets.