Company Number: 14094269

Analysis Date: 2025-07-20 18:55 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net assets and net current liabilities over three consecutive years, indicating solvency concerns. The micro-entity scale and lack of audit limit financial transparency, increasing risk.

2. Key Concerns:

• Solvency Risk: Negative shareholders' funds of £3,347 as at 31 May 2024, worsening from prior years, suggest the company’s liabilities exceed its assets.
• Liquidity Issues: Current liabilities (£4,881) significantly exceed current assets (£1,534), resulting in a working capital deficit that raises questions about the ability to meet short-term obligations.
• Financial Transparency: Accounts prepared under micro-entity provisions without audit reduce the level of external assurance and may obscure financial difficulties.

3. Positive Indicators:

• Regulatory Compliance: The company is up to date with both accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Stable Management: The director and PSC information show no disqualifications or governance issues; continuity of personnel is evident.
• Small Scale: As a micro-entity with only 2 employees, the business has limited overheads, which may afford flexibility in managing costs.

4. Due Diligence Notes:

• Investigate the nature and timing of creditor payments to assess liquidity pressures and potential overdue obligations.
• Review management plans or forecasts addressing the negative net asset position and working capital deficits.
• Confirm the company’s revenue generation and profitability trends beyond balance sheet data, if available.
• Evaluate any contingent liabilities or off-balance-sheet risks not reflected in micro-entity filings.
• Assess the relationship and financial arrangements with the accounting firm and PSCs for potential related party transactions.