Company Number: 14175543

Analysis Date: 2025-07-20 13:12 UTC

1. Risk Rating: MEDIUM
   The company demonstrates a moderate risk profile primarily due to its negative net current assets position in the most recent year, which suggests liquidity challenges. However, positive net assets and maintained shareholder funds provide some cushion. As a micro private company with limited operational history, there remains uncertainty about its ongoing operational stability.

2. Key Concerns:

• Deterioration in Working Capital: Net current assets declined from a positive £2,553 in 2023 to a negative £5,090 in 2024, indicating potential short-term liquidity stress and cash flow management issues.
• Declining Shareholders’ Funds: Equity reduced from £30,664 in 2023 to £23,388 in 2024, reflecting losses or impairments that may affect solvency if the trend continues.
• Limited Financial Transparency: The accounts are unaudited and abridged with no profit and loss account filed, restricting insight into profitability, cash flows, and detailed operational performance.

3. Positive Indicators:

• Positive Net Assets: Despite current liabilities exceeding current assets, total net assets remain positive at £23,388, suggesting solvency on a balance sheet basis.
• Intangible Assets Stability: Capitalised development costs of approximately £28,111 indicate ongoing investment in intellectual property, consistent with the company’s software development industry (SIC 62011).
• Timely Compliance: No overdue filings are noted for accounts or confirmation statements, demonstrating regulatory compliance to date.

4. Due Diligence Notes:

• Investigate the causes of working capital deterioration and whether this is due to one-off events or structural cash flow issues.
• Obtain more detailed profit and loss information to assess operational profitability and recurring expenses, especially given the absence of an audited account.
• Review management plans and cash flow forecasts to confirm business sustainability and ability to meet short-term obligations.
• Clarify the nature and future amortisation plans for intangible assets to understand future impact on earnings.
• Confirm no director disqualifications or governance issues beyond the data provided, noting the director’s direct involvement and shareholding.