Company Number: 13619620

Analysis Date: 2025-07-29 16:57 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and shareholders’ funds, indicating a basic ability to meet short-term obligations. However, it is an early-stage entity with limited financial history, a small share capital base, and a large accumulated loss, which elevates the risk profile.

2. Key Concerns:

• Accumulated Losses: The profit and loss account reserves show a significant deficit (£542,138), which may indicate ongoing losses or prior investment write-downs, potentially pressuring solvency if not offset by future profits.
• Limited Financial History: Only one set of unaudited accounts is available for a company incorporated in late 2021; lack of trend data limits confidence in operational stability and profitability.
• Small Capital Base vs Share Premium: Share capital is minimal (£289.54), though a large share premium (£579,637) exists. This structure can constrain flexibility and may complicate capital raising or creditor confidence.

3. Positive Indicators:

• Positive Net Current Assets: As of 30 September 2022, net current assets of £37,612 suggest sufficient short-term liquidity to cover immediate liabilities.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating good regulatory compliance and governance practices.
• Active Management: Three directors appointed with clear roles, including a CEO; presence of significant control holders suggests engaged ownership.

4. Due Diligence Notes:

• Verify updated financials beyond September 2022 to assess current liquidity and solvency positions.
• Review cash flow statements and management forecasts to evaluate operational sustainability and plans to address accumulated losses.
• Investigate business model robustness and client contracts within the software development sector (SIC 62012) to understand revenue generation potential.
• Confirm any director or shareholder changes post-2023 and check for related party transactions or conflicts of interest.
• Assess whether the company plans to seek external audit or external funding, which may impact risk posture going forward.