Company Number: 13889796

Analysis Date: 2025-07-20 18:47 UTC

1. Risk Rating: HIGH
   The company exhibits a precarious financial position with net current liabilities, minimal net assets, and a significant decline in shareholders' funds within a short operational period.

2. Key Concerns:

• Negative Working Capital: As of the latest financial year ending February 2024, current liabilities (£51,235) exceed current assets (£48,098), resulting in net current liabilities of £3,137. This suggests potential liquidity stress and challenges in meeting short-term obligations.
• Diminished Net Assets and Shareholders’ Funds: Net assets have dropped sharply from £1,303 in 2023 to £29 in 2024, indicating erosion of equity and financial buffer. Such a low equity base increases solvency risk.
• Limited Operational History and Scale: Incorporated in 2022, the company is in its second year with a single employee and micro-entity status, restricting financial transparency and indicating a small scale which may impact sustainability and ability to absorb shocks.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, reflecting compliance with statutory filing requirements.
• Director Control and Stability: Stuart Terence Hope is the sole director and significant controller (75-100% ownership and voting rights) which may facilitate swift decision-making and operational control.
• Micro-entity Reporting: Simplified reporting reduces administrative burdens and costs, which may be beneficial for a small consultancy start-up.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess potential short-term cash flow pressures and creditor relationships.
• Review the detailed notes or management commentary (if available) for explanations on the sharp decline in net assets within one year.
• Evaluate the company's revenue streams, client base, and contracts to determine operational sustainability beyond the initial start-up phase.
• Confirm absence of contingent liabilities or off-balance-sheet risks not evident in the micro-entity filings.
• Assess related-party transactions considering the director is the sole significant controller, to ensure proper governance and arm’s length dealings.