Company Number: 14721175

Analysis Date: 2025-07-20 18:38 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities and negative shareholders' funds shortly after incorporation.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: As of 31 March 2024, net liabilities stand at £3 and shareholders’ funds at negative £4, indicating insolvency on a balance sheet basis.
• Working Capital Deficit: Current liabilities (£83) exceed current assets (£79), resulting in negative net current assets (-£4), which suggests the company may struggle to meet short-term obligations without additional funding.
• Dependence on Director Loans: The sole current liability is a loan from directors amounting to £83, indicating reliance on related-party funding rather than external financing, which may raise concerns about financial sustainability.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, reflecting regulatory compliance and good governance in terms of statutory obligations.
• Clear Ownership and Control Structure: The current PSC is well documented, with a single individual holding majority shares and voting rights, which may facilitate decision-making efficiency.
• Industry Focus: Active in advertising agencies and management consultancy, sectors with growth potential that could support future revenue generation once operational scaling occurs.

4. Due Diligence Notes:

• Financial Performance Post-First Year: Investigate any unaudited management accounts or forecasts beyond the initial financial year to assess operational progress and financial trajectory.
• Director Loans Terms and Repayment Plans: Clarify the nature and conditions of director loans, including repayment schedules and any intentions for capital injections or third-party financing.
• Business Model and Client Pipeline: Evaluate the company’s commercial activities, contracts, or client base to ascertain viability and prospects for generating sufficient cash flow to reverse current negative equity.
• Director Backgrounds and Related Party Transactions: Review director credentials and any related-party dealings that might affect financial stability or raise governance concerns.
• Future Capital Commitments or Funding Plans: Assess any planned fundraising or capital restructuring to address the current negative net assets and working capital deficit.