Company Number: 14123275

Analysis Date: 2025-07-29 15:05 UTC

1. Risk Rating: HIGH

Justification: The company’s recent financial statements as of 31 May 2024 indicate negative net current assets (-£2,543) and negative total net assets/shareholders' funds (-£2,093), suggesting insolvency risk. The company is a micro entity but shows a deterioration from positive net assets of £100 in the previous year to negative equity. Given the limited operational history since incorporation in May 2022 and the negative equity, there are substantial solvency concerns.

2. Key Concerns:

• Negative net assets and working capital deficit: Current liabilities (£148,650) exceed current assets (£146,107) leading to a net current liability position.
• Limited operational track record: Incorporated in 2022 with only one employee, financials reflect early-stage issues without clear profitability or cash generation.
• Single director and shareholder control: Mr. Thomas Oliver Dickens holds 75-100% shareholding and voting rights, which concentrates governance risk and reduces oversight diversity.

3. Positive Indicators:

• No overdue filings: Both accounts and confirmation statements are up to date, suggesting compliance with statutory deadlines.
• Micro-entity status: Limited size may reduce complexity and external obligations.
• The presence of some fixed assets (£450) and a relatively significant current asset base (£146k), which may represent cash or receivables.

4. Due Diligence Notes:

• Investigate the nature and liquidity of current assets to verify if they are readily convertible to cash.
• Review underlying causes of negative net assets, including any accumulated losses or creditor pressures.
• Assess the company’s business model sustainability given its SIC code (68209 - Other letting and operating of own or leased real estate) and the impact on cash flow.
• Confirm the director’s plans or arrangements to address the working capital deficit and solvency position.
• Evaluate any related party transactions or financial support from the director or other parties.
• Review any contingent liabilities or off-balance sheet obligations not reflected in the accounts.