Company Number: 14500448

Analysis Date: 2025-07-20 17:07 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant negative net assets and shareholders’ funds, indicating insolvency on a balance sheet basis. Persistent and worsening net current liabilities suggest liquidity strain. The company is very recently incorporated and has limited operating history, increasing uncertainty about operational sustainability.

2. Key Concerns:

• Solvency Risk: Net assets are negative at -£14,053 (2024), improving slightly from -£24,294 (2023) but still significantly below zero, indicating liabilities exceed assets. This poses a fundamental solvency concern.
• Liquidity Concerns: Current liabilities (£49,673) exceed current assets (£34,279), resulting in negative net current assets (-£15,394). This indicates potential short-term cash flow difficulties meeting obligations as they fall due.
• Operational Stability: The company has only one employee (the director) and limited fixed assets, suggesting a very small scale of operations. The lack of turnover and continued losses shown in the profit and loss reserve raise questions about the sustainability of the business model.

3. Positive Indicators:

• Compliance: There are no overdue filings for either accounts or confirmation statements, showing adherence to statutory requirements.
• Director Control: The sole director and PSC is actively managing the company, which can support swift decision-making.
• Recent Increase in Current Assets and Cash: Current assets and cash balances have increased substantially from 2023 to 2024, which might reflect some operational improvement or capital injection.

4. Due Diligence Notes:

• Investigate the nature and timing of creditors and debtors to assess the company’s cash conversion cycle and any risk of bad debts.
• Review the company’s turnover, income streams, and business plan to evaluate prospects for achieving profitability and restoring positive equity.
• Examine any related party transactions or director loans that may affect the balance sheet and liquidity position.
• Confirm the company’s access to additional funding or capital support if needed.
• Clarify the reason for negative reserves and whether losses are expected to continue or have been mitigated recently.