Company Number: 14344317

Analysis Date: 2025-07-19 12:13 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net liabilities increasing sharply from £39,921 negative in 2023 to £46,255 negative in 2024, indicating a deteriorating financial position.

2. Key Concerns:

• Severe Negative Net Assets: The company’s net liabilities have grown substantially, reflecting accumulated losses and insufficient equity to cover liabilities.
• Liquidity Shortfall: Current liabilities (£46,650) vastly exceed current assets (£394), resulting in a negative working capital position of £46,256, which raises concerns about the company’s ability to meet short-term obligations.
• Consistent Loss-Making: The company recorded losses in both years reported (£31,121 loss in 2023 and £6,334 loss in 2024), suggesting ongoing operational challenges and lack of profitability.

3. Positive Indicators:

• Compliance with Filings: The company is current on both its accounts and confirmation statement filings, indicating good regulatory compliance.
• Micro-Entity Status: The company benefits from reduced filing requirements, which is appropriate given its size and early stage.
• No Off-Balance Sheet Liabilities: The accounts disclose no off-balance sheet items, which simplifies risk assessment.

4. Due Diligence Notes:

• Investigate Cash Flow and Funding Sources: Given the large negative working capital, review cash flow statements and any external financing arrangements or shareholder support.
• Assess Business Model Sustainability: Understand the company’s plans to return to profitability and how it intends to manage its liabilities.
• Director and Management Background: Confirm experience and track record of current directors, especially given the financial losses and negative equity.
• Contracts and Revenue Pipeline: Verify existence and stability of revenue streams to assess future operational viability.