Company Number: 14596615

Analysis Date: 2025-07-29 14:18 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets and shareholders' funds within its first year of operation, indicating potential solvency issues. Given the micro-entity status and limited financial history, the risk is elevated due to insufficient capital to cover current liabilities.

2. Key Concerns:

• Negative net current assets of £440 suggest the company may struggle to meet short-term obligations.
• The company was incorporated only in January 2023, so it lacks an operating track record or profit history to support sustainability assumptions.
• All directors reside at the same address, which may raise governance concerns related to independence and operational robustness.

3. Positive Indicators:

• The company is compliant with filing obligations; accounts and confirmation statements are up to date with no overdue filings.
• The presence of three directors and three persons of significant control with evenly distributed shareholdings suggests a balanced ownership structure.
• The company is engaged in building project development, a sector with potential growth, although more operational data is needed.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and whether there are any creditor arrangements or payment delays impacting liquidity.
• Assess the company’s business plan, cash flow forecasts, and funding sources to understand how it intends to resolve the current negative working capital position.
• Review any intercompany transactions or related party loans that may influence the financial position and director involvement.
• Confirm if there are any contingent liabilities or off-balance-sheet commitments not disclosed in the accounts.
• Evaluate management experience and governance practices given the shared address and ownership concentration.