Company Number: 14809745

Analysis Date: 2025-07-29 14:47 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks as evidenced by net current liabilities and negative net assets. It is an early stage business with limited financial history and negative equity, indicating potential financial instability.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company has net current liabilities of £724 and net liabilities of the same amount, showing an inability to cover short-term obligations with current assets.
• Limited Cash Reserves: Cash on hand is only £157, which is low for operational needs and may impair liquidity in meeting immediate expenses.
• Early Stage with Limited Financial Track Record: Incorporated in April 2023, with only one accounting period reported, the company’s operational sustainability and revenue generation are not yet proven.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with statutory requirements and good governance practices.
• Clear Ownership and Control: One director holds 75-100% shareholding and voting rights, providing clear decision-making authority.
• Small Company Reporting: The company is filing under small company exemption, which is normal for a startup and implies simplified reporting requirements.

4. Due Diligence Notes:

• Investigate the company’s current trading performance and cash flow projections to assess future liquidity and solvency prospects.
• Review any planned capital injections or financing arrangements that may improve the balance sheet and working capital position.
• Examine the operational business model and revenue streams to assess the likelihood of achieving sustainable profitability.
• Confirm the director’s plans to address negative equity and ensure the company can meet ongoing liabilities.