Company Number: 14639993

Analysis Date: 2025-07-20 15:39 UTC

1. Risk Rating: HIGH
   Given the company’s negative net current assets and net liabilities of £1,417 shortly after incorporation, along with its micro-entity status and very limited financial history, there is a high risk concerning solvency and liquidity at this early stage.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company shows net current liabilities of £1,417 and net assets of -£1,417, suggesting it is currently unable to cover short-term obligations with available assets.
• Early Stage and Limited Financial History: Incorporated only in February 2023 with just one set of micro-entity accounts filed, there is insufficient operating history to assess sustainability or growth prospects.
• Ownership and Control Concentration: Four individuals each control 25-50% of shares and voting rights, including directors and secretary. This concentration could pose governance risks if conflicts arise, though no misconduct is evident.

3. Positive Indicators:

• No Overdue Filings or Compliance Issues: Both accounts and confirmation statement filings are up to date, indicating regulatory compliance and good governance practices so far.
• Industry Focus on IT and Design: The company operates in specialized design and software development sectors (SIC codes 74100, 62020, 62012, 58290), which have growth potential if the business model succeeds.
• Small Employee Base: With only 2 employees on average, fixed costs may be low, allowing flexibility to scale cautiously.

4. Due Diligence Notes:

• Verify sources of funding and cash flow projections addressing the working capital deficit and negative net assets.
• Investigate business plan viability and client pipeline given the very early stage of operations.
• Examine relationship and agreements among the four significant controllers to understand governance dynamics and decision-making processes.
• Confirm absence of director disqualifications or adverse records beyond the publicly available data.
• Review subsequent filings after 28 February 2024 for any material changes in financial position or trading status.