Company Number: 14155008

Analysis Date: 2025-07-29 17:15 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant net current liabilities (£-55,984 in 2024 and £-89,183 in 2023) indicating a strained liquidity position. Current liabilities substantially exceed current assets, and cash reserves are very low relative to short-term obligations. The company is young (incorporated 2022) with limited operational history and only one employee, raising questions about operational scale and stability.

2. Key Concerns:

• Liquidity Shortfall: Net current liabilities are large and persistent, signaling potential difficulties in meeting short-term obligations as they fall due.
• Negative Working Capital Trend: Although slightly improved in 2024 versus 2023, the working capital remains deeply negative, indicating ongoing cash flow stress.
• Limited Operational Scale: Only one employee and a small asset base; the company’s ability to generate sufficient cash flow for sustainable operations is unproven.

3. Positive Indicators:

• Positive Net Assets in Latest Year: Shareholders’ funds moved from negative (£-6,684 in 2023) to positive (£8,724 in 2024), showing some improvement in the balance sheet position.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating compliance with statutory requirements.
• Tangible Fixed Assets: The company holds tangible fixed assets valued at approximately £64,708, which may provide some collateral value.

4. Due Diligence Notes:

• Investigate the nature and terms of the significant current liabilities (£78,849) to assess repayment schedules and any contingent liabilities.
• Review cash flow statements or management accounts to understand operational cash generation and timing of cash inflows/outflows.
• Evaluate revenue streams and client contracts to ascertain business sustainability and scale-up potential.
• Confirm any external funding arrangements or shareholder support that may underpin the company’s solvency going forward.
• Assess director and management background given the company’s short operating history.