Company Number: 14005321

Analysis Date: 2025-07-20 12:06 UTC

1. Risk Rating: HIGH
   Justification: The company shows persistent negative net current assets and shareholders' funds over its two years of operation, indicating a weak equity base and potential solvency concerns. Its liabilities exceed current assets, suggesting liquidity constraints.

2. Key Concerns:

• Negative Net Current Assets and Shareholders’ Funds: The company reported net current liabilities of £766 and shareholders’ funds of -£866 as of 31 March 2024, worsening from the prior year. This highlights ongoing funding shortfalls and potential inability to meet short-term obligations from current assets.
• Limited Operating History and Scale: Incorporated in March 2022 and employing only one person (the director), the company is a very small operation with limited financial and operational track record to assess business sustainability.
• Concentration of Control: The sole director, Mr. Colin Anthony Lane, also holds 75-100% share ownership and voting rights, concentrating decision-making authority and potentially increasing governance risk without independent oversight.

3. Positive Indicators:

• Up-to-Date Filings: The company has submitted accounts and confirmation statements on time with no overdue filings, indicating compliance with statutory requirements.
• No Indication of Insolvency Proceedings: The company remains active and is not currently in liquidation, administration, or receivership, which is a positive sign relative to immediate distress.
• Clear Accounting Policies: The financial statements follow FRS 102 and small companies regime, and the notes are transparent regarding accounting policies and financial instrument recognition.

4. Due Diligence Notes:

• Investigate the nature and source of the creditors classified under “other creditors” to understand short-term liabilities and payment terms.
• Examine the company's cash flow statements and bank balances (not disclosed here) to assess liquidity beyond balance sheet figures.
• Review management plans or business strategy to address ongoing negative equity and potential capital injections or restructuring measures.
• Assess the director’s experience, given his occupation as a publican and sole control, to understand operational capability and governance practices.
• Confirm whether there are any contingent liabilities or off-balance-sheet obligations not reflected in the accounts.