Company Number: 15007124

Analysis Date: 2025-07-29 19:54 UTC

1. Risk Rating: LOW-MEDIUM
   The company is newly incorporated (July 2023) and has filed its first set of accounts on time with no overdue filings, indicating compliance and good governance. The net current assets are positive (£13,791) and shareholders' funds stand at £14,286, suggesting modest but positive equity. However, the scale of operations is very small (Micro entity, 4 employees), and current liabilities are relatively high compared to fixed assets, which may constrain liquidity.

2. Key Concerns:

• Liquidity Buffer: Current liabilities (£122,944) are close to current assets (£136,735), leaving a narrow margin (£13,791) for working capital. This tight liquidity position could pose cash flow challenges if unexpected expenses arise or receivables are delayed.
• Scale and Operational Maturity: The company is in its infancy with limited operational history (first accounting period), making it difficult to assess sustainable profitability or resilience over economic cycles.
• Limited Asset Base: Fixed assets are negligible (£495), implying the company may rely heavily on inventory or receivables. This could increase risk if stock turnover slows or debts become uncollectible.

3. Positive Indicators:

• Regulatory Compliance: All statutory filings (accounts and confirmation statements) are up to date with no overdue returns, reducing regulatory risk.
• Positive Net Working Capital & Equity: Despite being a micro entity, the company shows positive net current assets and shareholder funds, indicating initial financial stability.
• Experienced Directors & Transparent Ownership: Two directors with clear control and no disqualifications reported; ownership is balanced between two individuals which may support stable governance.

4. Due Diligence Notes:

• Review cash flow statements and debtor aging once available to assess liquidity under stress scenarios.
• Assess the business model and revenue streams to understand how the company plans to scale profitably beyond its start-up phase.
• Investigate credit terms with suppliers and customers to evaluate working capital risk further.
• Confirm no related party transactions or contingent liabilities that could impact financial health.
• Monitor subsequent filings for growth trends or emerging operational challenges.