Company Number: 14762525

Analysis Date: 2025-07-19 12:14 UTC

1. Risk Rating: HIGH
   The company shows clear signs of financial distress with net liabilities of £10,516 and negative net current assets of £11,875 as of the latest filing. The cash balance of £6,339 is insufficient to cover current liabilities of £18,214, signaling liquidity concerns. The presence of negative shareholders' funds shortly after incorporation raises material solvency risks.

2. Key Concerns:

• Solvency and Liquidity: Negative net assets and net current liabilities indicate the company is not currently solvent and may struggle to meet short-term obligations.
• Dividend Payments Despite Losses: The notes reveal dividend payments of £49,128.92 to the parent company during the financial year, which could further impair available working capital and raise questions on governance and prudent financial management.
• Single Director with Recent Resignation: The company has only one active director, appointed at incorporation, with the other director resigning within one year. This may impact operational stability and oversight.

3. Positive Indicators:

• Timely Filing Compliance: The company is up to date on account and confirmation statement filings with no overdue returns, indicating regulatory compliance in filing obligations.
• Parent Company Support: Ownership and control by Shurah Holdings Ltd may provide access to additional resources or financial backing, although this is not guaranteed.
• Small Scale Operations: With only one employee and modest fixed assets, the company may have limited overhead and operational complexity.

4. Due Diligence Notes:

• Investigate the rationale and source of dividend payments given the negative equity position and whether these complied with legal and fiduciary duties.
• Assess the parent company’s willingness and capacity to provide financial support going forward to mitigate solvency risks.
• Review the business model and revenue generation prospects as turnover figures are not disclosed, limiting assessment of operational sustainability.
• Confirm that the director remains committed and capable of managing the company’s turnaround or growth plans.
• Examine any contingent liabilities or off-balance sheet obligations not disclosed in the filleted accounts.