Company Number: 14876178

Analysis Date: 2025-07-20 17:48 UTC

1. Risk Rating: HIGH
   The company exhibits financial distress with net current liabilities and negative net assets shortly after incorporation, indicating solvency concerns.

2. Key Concerns:

• Negative Net Assets and Working Capital: As of 31 May 2024, net current liabilities are £2,698 and net assets are negative at £2,598, suggesting the company is technically insolvent.
• Limited Operating History and Scale: Incorporated in May 2023, with only one reported employee and micro-entity filing status, the company is at a very early stage with limited financial data and operational track record.
• Director Turnover and Control: Two directors resigned within the first year; the remaining director and majority shareholder holds significant control, which may pose governance risks if not balanced.

3. Positive Indicators:

• Timely Filing Compliance: No overdue filings for accounts or confirmation statements, indicating compliance with statutory obligations.
• Clear Ownership Structure: One individual holds 75-100% ownership and voting rights, providing clear decision-making authority.
• Micro-Entity Status: Reduced reporting complexity may reflect prudent cost management appropriate for the company’s early stage.

4. Due Diligence Notes:

• Investigate the nature and cause of the negative net assets and current liabilities to assess whether this reflects start-up losses, unpaid liabilities, or other financial pressures.
• Review cash flow projections and funding arrangements to evaluate liquidity and the ability to meet short-term obligations.
• Assess the reasons behind director resignations and the impact on governance and operational stability.
• Consider the business model and market potential given the SIC code “Other manufacturing not elsewhere classified” is broad and unspecified.