Company Number: 14848906

Analysis Date: 2025-07-29 17:43 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk level primarily due to its negative net working capital, limited cash reserves, and relatively high short-term liabilities compared to current assets. Additionally, as a newly incorporated entity with only one financial period reported, there is limited financial track record to establish operational stability.

2. Key Concerns:

• Liquidity Risk: The company has net current liabilities of £13,643 and cash on hand of only £704, indicating potential short-term liquidity challenges to meet immediate obligations.
• Negative Working Capital: Current liabilities (£27,636) significantly exceed current assets (£13,993), which could strain day-to-day operations and cash flow management.
• Dependence on Director Loans: The presence of a director’s loan account (£506) with no formal repayment terms could mask underlying cash flow issues and may pose governance concerns if relied upon for liquidity support.

3. Positive Indicators:

• Positive Net Assets: Despite liquidity concerns, the company reports net assets of £8,851, reflecting some equity buffer primarily derived from retained earnings.
• No Overdue Filings: The company is compliant with filing deadlines for both accounts and confirmation statements, reducing regulatory risk.
• Sufficient Capitalization: Share capital of £10 is minimal but consistent with a micro-entity; no indication of excessive leverage beyond the director’s loan and borrowings.

4. Due Diligence Notes:

• Cash Flow Projections: Investigate short-term cash flow forecasts and sources of working capital to assess if the company can cover immediate liabilities.
• Debtor Quality: Review aging and collectability of trade debtors (£12,301) to understand potential impairment risks and actual cash inflows.
• Loan Terms and Support: Clarify terms of loans and director’s loan account, including any contingent liabilities or informal arrangements that affect financial stability.
• Operational History and Revenue: Obtain detailed business activity data to assess sustainability beyond the first financial period reported.
• Governance & Control: As a single-person majority shareholder and director, consider the company's governance framework and risk of control concentration.