Company Number: 14493143

Analysis Date: 2025-07-29 15:41 UTC

1. Risk Rating: LOW
   Justification: The company is newly incorporated (November 2022) and operates as a micro-entity with modest turnover (£10,064) and positive net current assets (£4,893). It reported a profit (£7,024) in its first accounting period, has no current liabilities, and no overdue statutory filings. These factors indicate low immediate financial risk.

2. Key Concerns:

• Limited Scale and Revenue: The turnover is very low, which may raise concerns about the sustainability and growth prospects of the business.
• Provision for Liabilities: There is a provision for liabilities of £1,647 relative to turnover and net assets, which merits further investigation to understand its nature and potential impact.
• Concentrated Control: The company is closely held by two individuals with one director holding significant voting control and appointment rights, which may pose governance risks for external investors.

3. Positive Indicators:

• Positive Net Assets and Working Capital: The company has net assets of £3,024 and net current assets of £4,893 with no current liabilities, indicating solvency and liquidity at this stage.
• Profitability in First Year: Despite low turnover, the company generated a profit, demonstrating initial operational viability.
• Compliance and Timely Filings: Accounts and confirmation statements are not overdue, showing good regulatory compliance.

4. Due Diligence Notes:

• Understand the nature and cause of the £1,647 provision for liabilities and any contingent risks associated with it.
• Review business model and client contracts to assess revenue growth potential and sustainability beyond the micro scale.
• Assess governance arrangements given the concentrated control by the director and related party exposures if any.
• Verify no hidden liabilities or off balance sheet exposures despite the absence of such disclosures in accounts.