Company Number: 14461002

Analysis Date: 2025-07-29 20:08 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, reflected in negative net current assets and shareholders' funds, as well as minimal cash reserves relative to current liabilities. The company is newly incorporated with limited operating history, which compounds the risk.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company’s net liabilities amount to £3,632, indicating it is currently insolvent on a balance sheet basis.
• Liquidity Shortfall: Cash on hand is only £1,212 against current liabilities of £5,722, resulting in a net current liability of £4,510, suggesting inability to meet short-term obligations without additional financing.
• Reliance on Director Loans: The director's loan account shows a significant negative balance (£4,921), which is interest-free and repayable on demand, implying dependence on director funding and potential cash flow fragility.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, indicating regulatory compliance and good governance in this respect.
• Going Concern Statement: The director asserts a reasonable expectation of continuing operations despite current financial difficulties, which suggests some level of confidence or planned future funding.
• Single Director/Shareholder Control: Clear ownership and management by one individual (Mr. Robert Ferguson) may allow for swift decision-making and potential for rapid capital injection if necessary.

4. Due Diligence Notes:

• Investigate the nature of the company’s business operations and revenue generation plans given the absence of income statement data and the negative equity position.
• Examine the source and sustainability of director loans and whether additional funding is planned or secured to support liquidity needs.
• Review any contingent liabilities or off-balance sheet commitments not disclosed that could further impact financial stability.
• Confirm the status and valuation of any underlying real estate assets, as the SIC code relates to letting and operating own or leased real estate, to assess asset backing and potential for recovery.
• Assess historical and projected cash flows, given the minimal cash balance and current liabilities, to understand operational sustainability.