Company Number: 15614443

Analysis Date: 2025-07-29 12:51 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position (£-17,903) and significant net current liabilities (£-74,230) within its first year of trading. This indicates solvency and liquidity risks, as current liabilities substantially exceed current assets. The absence of audit and limited disclosure under micro-entity provisions increases uncertainty.

2. Key Concerns:

• Negative equity and net liabilities suggest the company is currently insolvent on a balance sheet basis, raising concerns about its ability to meet obligations.
• Large current liabilities relative to current assets imply potential liquidity difficulties, which could impact operational continuity.
• The company is newly established (incorporated April 2024) and has only one employee (the director), limiting operational capacity and increasing execution risk.

3. Positive Indicators:

• The company has complied with filing deadlines for accounts and confirmation statements, indicating good regulatory compliance to date.
• Ownership and control are consolidated under a single director and shareholder, potentially facilitating streamlined decision-making.
• Fixed assets of £135,058 may represent tangible resources that could be leveraged or sold if necessary.

4. Due Diligence Notes:

• Review the nature and maturity profile of current and long-term liabilities to assess refinancing or repayment risk.
• Investigate the company’s business plan and cash flow projections to evaluate how it intends to address negative working capital and net liabilities.
• Confirm the valuation and liquidity of fixed assets and whether these are encumbered.
• Assess the financial support or commitments from the sole shareholder/director, including any personal guarantees or capital injections planned.