Company Number: 14409922

Analysis Date: 2025-07-29 16:51 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows a positive net asset position and working capital, indicating it can meet short-term obligations. However, the high level of current liabilities relative to current assets and a relatively low cash balance compared to debtors suggests some liquidity risk. The company is newly incorporated with limited financial history, which increases uncertainty.

2. Key Concerns:

• Liquidity Risk: Current liabilities (£985k) are close to current assets (£1,043k), with cash only £183k and a large portion tied up in debtors (£860k), potentially indicating cash flow pressure if debtors are slow to pay.
• Reliance on Debtors: Over 80% of current assets are debtors, which could impair liquidity if collection is delayed or disputed.
• Limited Financial History and Capital: Incorporated in late 2022 with only £100 share capital and no audit, the company’s track record is short, limiting insight into operational stability and profitability.

3. Positive Indicators:

• Positive Net Assets and Working Capital: Net assets of £57,804 and net current assets of £57,804 provide a buffer for liabilities.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating regulatory compliance and good governance to date.
• Substantial Workforce: Average employee number of 54 suggests an operational scale consistent with the business activity, implying some operational substance.

4. Due Diligence Notes:

• Verify the ageing and collectability of the debtors to assess cash conversion risk.
• Review cash flow statements or management accounts to understand liquidity dynamics beyond the balance sheet snapshot.
• Investigate the nature and timing of current liabilities, particularly the large taxation and social security creditor (£810k), to confirm any deferred payments or disputes.
• Confirm the roles and backgrounds of key directors and shareholders, especially given recent director changes and the concentration of control with two individuals.
• Explore whether the company has any contingent liabilities or off-balance-sheet risks not disclosed in the accounts.